GEORGE TOWN: The planned Kulim International Airport (KXP) is projected to rely heavily on passenger traffic despite repeated statements that it is to be a cargo airport, at least initially.
If all goes according to plan, KXP is slated to be ready by 2026, by which time Penang International Airport (PIA) would have reportedly gone beyond its maximum load of 12 million passengers per annum (mppa).
This expectation is detailed in KXP’s environmental impact assessment (EIA) report, now available for public viewing in Kedah until Sept 14.
In Chapter Five of the EIA, prepared by AGV Environment Sdn Bhd, it is stated that “KXP traffic will be mainly arising from the overspill of traffic from PIA”.
To boost demand, the report adds that “traffic incentives will be offered to convince AirAsia to operate from KXP and not wait until PIA reaches its ultimate capacity”.
The EIA consultant projects that passenger demand for the Northern Corridor Economic Region, covering Perlis, Kedah, Penang and northern Perak, will grow to 15.2mppa in 2034 and 31mppa in 2054.
“KXP will start off by serving 800,000 passengers a year on opening in 2026, growing to 1.4mppa in 2028, 9.1mppa in 2044 and 16.2mppa in 2054,” the EIA report stated.
In contrast, the forecast for cargo traffic in KXP is only about 10% of PIA’s current capacity.
KXP is expected to have 34,124 tonnes of cargo going through it by 2054, while PIA’s current cargo capacity is 300,000 tonnes.
The report specifies that these forecasts were made with assumptions that PIA’s capacity is not expanded beyond 12mppa and no expansions take place at the airports in Alor Setar and Ipoh either.
Last month, however, Malaysia Airports Holdings Bhd (MAHB) announced plans to upgrade PIA’s capacity to 12mppa by 2028 and 16mppa by 2033.
MAHB expects PIA to be able to handle 25mppa 30 years from now.
The plans are now on hold pending the finalisation of the National Airport Strategic Plan.
Since 2015, many leaders including former mentri besar Datuk Seri Mukhriz Mahathir and former economic affairs minister Datuk Seri Azmin Ali have said that KXP would be planned as a cargo airport in the initial stages only.
In 2019, Penang Chief Minister Chow Kon Yeow expressed doubt in the state assembly that KXP as a brand new airport would only offer cargo service.
On Aug 2, Kedah Mentri Besar Muhammad Sanusi Md Nor signed a joint-venture agreement with ECK Development Sdn Bhd for the setting up of a special purpose vehicle that would be the owner and developer of the project.
ECK Development will own 80% of the project and the remainder by KXP AirportCity Holdings Sdn Bhd, a subsidiary of Kedah State Development Corporation.