The 3,500-acre Malaysia-China Kuantan Industrial Park (MCKIP), developed in 2013 as a sister project to the China-Malaysia Qinzhou Industrial Park (CMQIP) in China. — Malaysia-China Kuantan Industrial Park
AS MALAYSIA and China celebrate 50 years of diplomatic relations this year, their partnership continues to yield tangible benefits, especially in infrastructure development.
At the heart of this cooperation is the Malaysia-China Kuantan Industrial Park (MCKIP), a strategic hub supported by the East Coast Rail Link (ECRL) and Kuantan Port.
Together, these initiatives are driving regional economic growth, fostering trade, and reinforcing Malaysia’s role in South-East Asia’s trade network.
Towards regional prosperity
The East Coast Rail Link (ECRL), set to commence operations in 2027, will establish a vital land-sea bridge connecting Port Klang to Kuantan Port, traversing Selangor, Johor, Pahang and Kelantan.
Spanning 665km, this link is expected to reduce logistics times, lower transport costs, and boost efficiency for container and bulk cargo movements.
One of these developments is the 3,500-acre Malaysia-China Kuantan Industrial Park (MCKIP), developed in 2013 as a sister project to the China-Malaysia Qinzhou Industrial Park (CMQIP) in China.
Both parks introduced a new model of international cooperation, known as the “Two Countries, Twin Parks” concept, as part of China’s Belt and Road Initiative (BRI) to promote cross-border production capacity cooperation.
This industrial partnership has facilitated trade flows between Malaysia and China, with goods moving seamlessly from MCKIP to Kuantan Port – located just 12 km away – and onward to Qinzhou Port.
The sea journey spans 1,104 nautical miles (2,045 km) and takes just four to five days.
With its proximity to the ECRL and Kuantan Port, MCKIP strengthens Malaysia’s position in global supply chains, enabling direct trade linkages with China, South-East Asia and beyond.
Chief Secretary to the Government Tan Sri Mohd Zuki Ali, who is the Malaysia Rail Link (MRL) chairman (centre) visiting the Kampung Gedung Siam 3 tunnel of the ECRL back in Aug 2023. — Filepic
Port of call
Established in 1974 under the Kuantan Port Authority, Kuantan Port commenced operations in 1984 primarily serving the hinterland regions of Malaysia’s East Coast. Strategically located along the South China Sea, Kuantan Port lies along key maritime trade routes, enhancing its connectivity and accessibility within regional and global supply chains.
In 1998, the port was privatised, leading to the formation of Kuantan Port Consortium Sdn Bhd, with Road Builder Holdings Bhd, which eventually merged with IJM in 2008.
Since 2013, China’s Guangxi Beibu Gulf International Port Group has held a 40% stake, with IJM retaining the remaining 60%.
This partnership reflects the deepening economic cooperation between Malaysia and China, as well as strategic alignment with the BRI.
Expansion plans were initiated in 2013, leading to the development of two distinct areas: the original Kuantan Port 1, which has a maximum draught of 11.2 meters and accommodates vessels up to 55,000 deadweight tonnes (DWT), and the New Deep-Water Terminal (NDWT).
The NDWT’s Phase 1A was completed and commenced in 2018, with a draught of 16.5m, enabling it to handle larger vessels with capacities of up to 180,000 DWT, while Phase 1B followed suit the following year.
Phase 2 is slated to complete by Dec 2039.
Today, Kuantan Port is recognised as Malaysia’s largest bulk cargo terminal operator, with bulk cargo accounting for 90% of its cargo mix.
Its proximity to oil and gas as well as petrochemical production facilities allows it to specialise in handling liquid cargo and hazardous materials, supporting Malaysia’s oil and gas sector.
Kuantan Port breaks another record by welcoming MV Heng Mao, the deepest vessel ever berthed in Kuantan Port with a 16.4-metre draught on Oct 17, 2022. — Kuantan Port
Strategic location
MCKIP’s potential has attracted several international companies, which is projected to create about 20,000 long-term jobs and will increase Kuantan Port’s annual throughput capacity by over 15 million tonnes upon completion.
Alliance Steel is the park’s flagship investor, operating Malaysia’s largest steel production facility with an annual capacity of 3.5 million tonnes.
The company’s RM5.6bil investment spans 710 acres, with plans for further expansion in MCKIP 1, where it has secured an additional 305 acres for further investment valued at RM7bil.
Other key investors include Maxtrek Tyre Manufacturing, which has invested RM1bil in a 174-acre facility, and Jianhui Paper, which aims to produce 2.4 million tonnes of paper pulp annually.
The industrial base also features IJM’s Industrial Concrete Products, which manufactures concrete spun piles and Camel Power Malaysia, a key producer and distributor of automotive batteries, further broadening the park’s economic footprint and capacity for industrial development.
In 2023, the Malaysia-China Kuantan International Logistics Park (MCKILP) was launched within MCKIP 3 as a 640-acre integrated logistics and mixed-use development.
Developed through a joint venture between China Harbour Engineering Company Ltd (CHEC), IJM and Guangxi Beibu Gulf International Port Group, MCKILP features light and medium industrial zones, logistics and warehousing facilities, as well as residential and commercial components, positioning it as a key industrial and logistics hub in the East Coast Economic Region (ECER).
These investments highlight MCKIP’s role as a beneficiary of the BRI’s industrial cooperation strategy, promoting sustainable development and reinforcing China’s commitment to co-developing production capacity with its trading partners.
Benefits of ECRL link
The ECRL, with two spur lines leading directly into Kuantan Port will potentially be a game changer for Malaysia’s logistics landscape.
This direct rail link will provide a fast, cost-efficient route for container cargo between the East and West coasts, strengthening Malaysia’s position as a trade and logistics hub.
By connecting Port Klang, MCKIP and Kuantan Port, the ECRL enables smoother trade flows, boosts cargo throughput, and attracts container liners, opening new trade routes to China and other key export markets.To prepare for the ECRL’s arrival, Kuantan Port is expanding its container operations, investing in critical equipment and optimising scheduling processes to improve operational efficiency.
The port is also working with logistics partners to develop end-to-end solutions for cargo movement, including freight forwarding, warehousing and last-mile delivery.
These efforts will ensure that Malaysia’s East Coast becomes a vital link in global trade routes, particularly in China-Asean trade.
This connectivity reinforces the BRI’s goal of improving regional and global logistics networks and catalysing new economic growth in the area.
