The Malaysian government will draft a policy paper to transform Kuala Lumpur International Airport into a regional air cargo hub, reports Free Malaysia Today.

Transport Minister Loke Siew Fook said KLIA handles only one-third of Singapore's Changi Airport cargo volume despite having greater physical capacity. He cited slow customs clearance and lengthy loading and transfer times as key weaknesses.

Speaking after a closed-door meeting with the National Logistics Task Force, Mr Loke said the initiative requires cooperation from the finance ministry's customs department and other agencies to streamline regulations and improve efficiency.

The meeting also addressed plans to shift freight transport from road to rail to reduce congestion, heavy vehicle accidents and carbon emissions. The government aims to raise rail freight's share from one per cent to at least 10 per cent.

Bulk materials such as minerals, coal, cement and bricks are targeted for rail transport. Loke said reducing heavy lorry traffic is a priority.

Improvements to first-mile and last-mile connectivity are underway, including leasing more locomotives and wagons and building new spur lines to link rail terminals with industrial zones.

Mr Loke assured hauliers that their role remains vital, as truck deliveries will still be needed for first and last-mile logistics. He said industry associations support the shift to rail.