Kuehne+Nagel and City Zone Express open Special Border Economic Zone facility by the Malaysia-Thailand border
Kuehne+Nagel and City Zone Express have taken the lead as anchor tenants at the new Bukit Kayu Hitam Inland Container Depot (BKH ICD) Hub, which commenced operations on May 1, 2025. This strategic move underscores our commitment to shaping the future of cross-border logistics between Malaysia and Thailand.
In 2018, Malaysia launched the Special Border Economic Zone (SBEZ) in Bukit Kayu Hitam, aiming to enhance cross-border infrastructure and tap into southern Thailand’s economic momentum. Spanning 11,619 acres, the development includes a land port, a free trade zone, and a commercial area.
Although the concept was initiated in 2018, the COVID-19 pandemic temporarily halted progress. The project resumed in 2021 and commenced operations in Q1 2025. Now known as the Bukit Kayu Hitam Inland Container Depot (BKH ICD) Hub, the site is fully operational, featuring Free Commercial Zone warehouses less than 500 metres from Malaysia’s customs checkpoint. The hub also includes:
- An open yard with capacity for 250,000 TEUs
- Container repair facilities
- LOLO services
- Reefer container systems
- VGM capabilities
- Dedicated customs lanes operating 24/7
The BKH ICD Hub also supports Penang Port's Transshipment Hub Strategy, with plans to establish an Academic Logistics Institute.
Our early engagement with the BKH ICD team, established presence in Penang and Bukit Kayu Hitam, and strong foothold in cross-border movements between Thailand and Malaysia positioned us well to lead this initiative. We have already set up facilities for customs clearance documentation and a yard, which are now consolidated under the BKH ICD roof. With a dedicated space of 1,700 sqm, this partnership will enable faster clearance through:
- In-house customs capabilities
- Seamless cross-docking
- LTL (Less-than-truckload) shipment consolidation
- A dedicated lane for Thai trucks post-clearance
Beyond operational benefits, we are also committed to driver welfare. The hub features a trucker’s lounge and on-site restaurants to promote rest, reduce fatigue, and enhance productivity.
Chellan Ganesan, Head of Road Logistics, Asia and the Pacific, Kuehne+Nagel commented, “We see this as a strategic fit to our Roadmap 2026 and Vision 2030 initiatives in advancing cross-border road transportation in this corridor. With BKH ICD, we are setting a new standard for regional logistics and paving the way for a smarter, more efficient future for cross-border movements.
Analysts predict that land transport via Thai-Malaysian border checkpoints will soon surpass marine transport in efficiency. Malaysia and Thailand are targeting US$30 billion in bilateral trade by 2027, driven by the rise of international cross-border trucking. Our partnership is both timely and transformative1.”
1 Source
With more than 82,000 employees at almost 1,300 sites in close to 100 countries, the Kuehne+Nagel Group is one of the world's leading logistics providers. Headquartered in Switzerland, Kuehne+Nagel is listed in the Swiss blue-chip stock market index, the SMI. The Group is the global number one in air and sea logistics and has strong market positions in road and contract logistics. Kuehne+Nagel is the logistics partner of choice for 400,000 customers worldwide. Using its global network, logistics expertise and data-based insights, the Group provides end-to-end supply chain solutions for global companies and industries.