The Malaysian Intermodal Terminal System: The Implication on the Malaysian Maritime Cluster

The maritime sector in Malaysia is best known globally due to the Straits of Malacca and being a nation surrounded by sea. Malaysia also has a substantial maritime industry consisting of numerous shipyards, ports and terminal faculties, ship services and a plethora of other companies and institutions with maritime oriented activities and become essential components of the Malaysia's maritime clusters. Issues such as underutilised intermodal terminals, uneven proportions in the freight transport infrastructure and road and seaport congestions prevent Malaysian seaports from achieving their full potential in serving their respective hinterlands. The key factors to improve Malaysian dry port or intermodal terminals are transport network; container planning; competition; location and, externalities. The paper does not only present the critical challenges faced by Malaysian intermodal terminals especially dry ports and the implications for seaport competency but it also provides strategies to utilise the Malaysian freight multimodal system to amplify seaports’ performance in serving their hinterlands. As such, this may warrant policy makers to devise a comprehensive national master plan for the maritime sector in order for Malaysia to further develop her maritime industry and economies.