Malaysia approves 42 million teu Carey Island port plan as Westports eyes recovery

The Malaysian government has formally approved the Carey Island Development Plan under the Port Klang Third Terminal project in Selangor. The plan centres on a Malaysia Maritime Port City and a Carey Island Port Special Economic Zone, and is intended to strengthen Selangor's and Malaysia's position as a regional maritime hub.

The development covers about 1,012 hectares and would add 42 million teu of container handling capacity, with cargo throughput projected at 38 million tonnes. For scale, Port Klang handled 15.14 million teu in 2025, which ranked it tenth in the world. The 42 million teu figure is an ultra-long-term target; the opening date of a first phase and the engineering tenders have not been disclosed.

Who will build and run it?

Selangor's state government has confirmed that a special purpose vehicle will bring in private capital, with the participating parties forming a project company to oversee construction and operations. In March 2026 the federal authorities decided that Selangor would lead the vehicle; its equity structure is still under negotiation. Several domestic infrastructure groups and international terminal operators have competed for a role, but the final list of operators or consortiums has not been published. Transport minister Anthony Loke said in June that, once land matters are resolved, construction could begin within the year.

What about the existing terminals?

Westports, the container terminal operator at Port Klang, is separately expanding from 14 million teu to 28 million teu. Dredging and land reclamation for its CT10-CT13 project are about 70% complete, and wharf and yard construction is expected to start in 2027, subject to final plans. Capital expenditure is projected at RM700 million in 2026, rising to between RM1.1 billion and RM1.4 billion a year in 2027 and 2028 as the project moves into equipment purchases.

Following a site visit, Hong Leong Investment Bank said Westports has kept its full-year throughput growth target in the low single digits, although volumes fell 1% year on year in the first half. The bank expects a recovery in the second half as more vessels are released from the Persian Gulf and liner operators realign schedules and routes around the Iran conflict.

Value-added services such as container storage reached a record 30.7% of Westports' container revenue in the second quarter, helped by higher storage volumes and a tariff increase in January. Westports has been clearing long-staying containers, particularly e-waste, and yard occupancy has improved to between 70% and 80%. The bank expects storage income to normalise by year-end and the freed space to help the terminal take ad-hoc transhipment volumes. It estimates that Malaysia's minimum wage rise to RM2,000 in June 2027 will add about 5% to staff costs; Westports' current minimum salary is RM1,900.

This story is part of the Maritime Briefing of 29 October 2026.