MAHB signs MoU with CHAGC for air cargo expansion

Malaysia Airports Holdings (MAHB) has inked a Memorandum of Understanding (MoU) with China Henan Aviation Group Co., Ltd (CHAGC) to bolster air cargo connectivity and logistics between Malaysia and China, marking a strategic move to enhance trade relations between the two countries.

The partnership aims to elevate the efficiency and reach of both airport operator groups by introducing new air cargo routes between Zhengzhou Xinzheng International Airport (CGO) and Kuala Lumpur International (KUL), ultimately strengthening KUL’s position as a regional logistics hub and fostering smoother trade links between Europe and Malaysia.

To kickstart this collaboration, Raya Airways is set to operate cargo flights three times a week between KUL and CGO starting from August. Moreover, China Southern will commence daily commercial flights between the two airports from June 21, further solidifying the air connectivity between Malaysia and China.

In addition to expanding direct air routes, the partnership will concentrate on enhancing the necessary infrastructure to support transshipment and re-export activities at KUL. Leveraging CHAGC’s expertise, MAHB anticipates significant enhancements to KUL’s cargo capabilities, which will ultimately bolster Malaysia’s position in global trade.

CHAGC, which currently manages CGO and oversees cargo terminal projects in Budapest Ferenc Liszt International Airport (BUD) and Leipzig/Halle Airport (LEJ), aims to extend its overseas projects in Asia, with Malaysia being a focal point for establishing an air cargo hub to complement China’s Belt and Road Initiative and bolster air connectivity in the region.

Mohamed Rastam Shahrom, MAHB’s acting group chief executive, expressed enthusiasm about the MoU, emphasising its significance in enhancing Malaysia’s role in global trade. He highlighted the broader implications, indicating that by strengthening air cargo connectivity and logistics capabilities, the partnership would stimulate economic growth and development in the region.

This initiative aligns with MAHB’s ongoing efforts to expand KUL’s cargo facilities in line with the “KLIA Aeropolis Master Plan”, which is closely intertwined with Malaysia’s National Transport Policy 2019-2030 and the New Industrial Master Plan 2030, aimed at propelling the nation’s industrial growth and optimising transport efficiency.