Penang Port Launches Private 5G, and Fahmi Wants Coverage Rules to Count Ports

Penang Port has switched on what the government calls Malaysia's first private 5G network running on dedicated spectrum, at the North Butterworth Container Terminal. Its technology partner is Altel Communications.

At the launch on 17 October, Communications Minister Fahmi Fadzil also raised a bigger policy question, as reported by The Star: whether Malaysia should change the way it measures 5G coverage.

What private 5G does at a port

Unlike a public mobile network shared with phones, a private 5G network gives an operation its own dedicated capacity. Fahmi said Penang Port's network would support three main uses:

• Remote-controlled heavy machinery, with gantry cranes potentially operated from a distance.
• Automated security surveillance, including 5G-connected robotic dogs on patrol.
• Push-to-talk communication over 5G, replacing older analogue radio systems.

The goal, he said, is lower operating costs, higher productivity and better safety. He also cited DHL's highly automated "dark warehouse" in Batu Kawan as an example of what 5G-enabled automation can do.

Rethinking coverage measurement

Malaysia currently reports 5G coverage using COPA, or Coverage of Populated Areas. Fahmi said this does not reflect places with heavy economic activity but few residents, such as ports, railway lines and highways.

The Communications Ministry and MCMC will study the idea, which could be raised at an International Telecommunication Union meeting in Doha in November. The ministry is also preparing a Cabinet paper on extending private 5G to other ports, including Port Klang, using data from Penang Port.

Key takeaway: coverage targets shape where networks get built. Counting ports, rail and highways could steer investment towards places businesses actually use.

A push to industry

Fahmi urged MMC Group, which operates several major ports, to consider the technology at its other facilities, and encouraged manufacturers and multinationals in Penang to explore private 5G. The state hosts more than 450 multinational companies. For background on the national network's finances, see our report on telcos taking on new spectrum.

How the network is built

Unlike a public network, the core systems and applications for a private 5G setup can be hosted on site, which keeps sensitive operational data within the port and reduces delays. Coverage reported by other outlets extends across the container terminal and the Butterworth Deep Water Wharves. For cranes and vehicles that need instant responses, low and predictable latency is the main selling point.

Private networks also avoid competing with the public for capacity. At a busy port, thousands of phones near the terminal will not slow down machine communications. That reliability is what makes remote operation of heavy equipment realistic.

What it means for Malaysians

Most people will never use a port's private network directly, but they feel the results. Faster, more reliable port operations can shorten shipping times and help keep logistics costs in check, which matters for prices of imported goods. Jobs at ports and warehouses may shift towards technical roles such as remote crane operators and network technicians.

If coverage rules change, highway drivers and rail passengers could also benefit from better connectivity along routes that today fall outside "populated area" targets.

Penang Port's network is a test case. If the productivity gains are clear, expect private 5G to spread to more ports, factories and logistics hubs.