LANGKAWI: The Kedah state government is considering several proposals from several companies based in Europe and China for collaboration to build a cargo airport in Kulim.

Mentri Besar Datuk Seri Mukhriz Mahathir said the companies believe Kedah is strategically located to become the country’s air logistics hub.

“That’s why we are continuing with this proposal, and we have received several proposals from foreign private entities,” he told reporters after opening the Kedah International Business and Investment Summit here.

He said the federal government had recently agreed to the decision to proceed with the airport project but had asked the state government to seek financing from sources other than the federal government.

Mukhriz said the private financing initiative (PFI) is one strategy for the state government to continue with the project without depending on the federal government for financing.

He said after the proposal he made in 2014, two viability studies have been conducted, one by the consultant involved in the development of the Kuala Lumpur International Airport, and the other by the Transport Ministry.

“Both studies show the proposal is very viable and in fact, could boost the economy of Kedah in particular and Malaysia in general,” he said.

he also expressed hope the project could be implemented within its earlier estimated cost of RM1.6 billion.

“We only need warehousing, parking apron, and a container area, so we can control these costs.

“What is important is the good response from exporters and importers who are looking forward to this new airport,” he said of the airport which will be located close to the Kulim High Technology Park and Penang with their high demand for air freight. — Bernama

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