THE Port Klang Free Trade Zone (PKFZ) will expand its capacity and digitalise operations to improve efficiency, chairman Lawrence Low said.

A plan to automate operations will be completed next year, while RM1.2 billion will be spent on the redevelopment of warehouses over the next 10 years to meet the needs of the booming logistics industry, Low told The Malaysian Insight.

“We need to abandon outdated models.”

The redevelopment plan covers 512 warehouses, which will be enlarged to three times their current capacity.

“With greater capacity, we can boost turnover to RM120 million from RM40 million,” said Low, who became chairman of PKFZ during the Covid-19 pandemic in 2020.

Bids for the redevelopment project were invited last year and PKFZ is currently reviewing tenders.

A decision will be made this month, Low said.

An ongoing digitalisation plan is to be completed next year and will increase operational efficiency by 200%, he added.

“Warehouses in PKFZ are still using manual operations and paperwork.

“And tenants are reporting to us that there is too much red tape. We’re not keeping up digital transformation.”

Under the digitalisation plan, some operations will be automated using artificial intelligence (AI) and big data.

“To further enhance the security of PKFZ’s business operations, PKFZ will deploy brand-new facial recognition software and license plates, provide factual dashboards and business analysis systems, and realise paperless internal operations and processes to be more environmentally friendly.”

PKFZ’s operating costs were kept within a certain range but saw an increase beginning this year, Low added.

This has led to higher repair, maintenance and upgrading costs, a situation Low expected to continue for three to five years as facilities in the free trade zone suffers wear and tear.

PKFZ was incepted by the government in 2002 but was plagued with inflated costs throughout its development, causing initial estimates for the RM1.957 billion project to balloon to RM4.947 billion.

Despite corruption probes and charges filed over the project, including against two former transport ministers, no one was ever convicted.

PKFZ, which is adjacent to Port Klang, was ranked 12th in the world for throughput volume in 2019. – May 4, 2022.