GEORGE TOWN: Plans for an airport in Kedah, even if it is only for cargo, will have a negative impact for Penang, says Chief Minister Chow Kon Yeow.

He said cargo services at Penang International Airport (PIA) have not reached full capacity and there was still room for growth.

"While the passenger traffic has reached capacity, which is more than nine million passengers, cargo traffic still has a bigger capacity," said Chow when answering a question from Lee Khai Loon (PH-

Machang Bubok), who asked about the impact the Kedah airport will have on PIA at the state assembly here Monday (April 29).

"An airport in Kedah will have negative impact on Penang unless the overall plan shows that there could be a win-win situation for both states.

"The honourable Kedah Mentri Besar said Kedah is planning an airport to cater for cargo during his visit to Penang to brief the state on the airport.

"However, the survey done to build the airport was a comprehensive one that included both passengers and cargo," he said.

Chow said the Finance Ministry had said the airport was a Private Finance Initiative and it was still too early to say what type of an airport it would be.

To a question from Goh Choon Aik (PH-Bukit Tambun) on plans to build an airport on one of islands under the Penang South Reclamation project, Chow said it would need to be studied.

Kedah Mentri Besar Datuk Seri Mukhriz Mahathir had said in February that the state had obtained approval from the federal government to develop the new RM1.6bil airport in the Kuala Muda district.

He said a special entity known as KXP AirportCity Holdings has been set up to plan, coordinate and manage the development of Kulim International Airport (LTAK).