Segamat inland port (SIP), in the southern Malaysian state of Johor, will be completed soon. The Klang Port Authority (KPA), which is developing the first phase of the port with an investment of M$8.5 million (about HK$26.35 million), will run the facility. SIP is a joint venture between KPA, Malayan Railway, Johor Technopark - a subsidiary of Johor State Development Corp - and Segamat Consolidated Plantation. The Malaysian Government is to restructure haulage tariffs to encourage movement of goods through Port Klang, as shippers find it cheaper to use Singapore to service the Segamat area. If the boxes were sent by rail, the haulage cost could be reduced 'to turn the cost differential in favour of Port Klang', Mr Ling said. This would help the country's national policy of making Port Klang a hub port. SIP is to provide seaport facilities for shippers located within a 60-90 km radius of southern Malacca and northern Johor. Rail links to other ports in the country would also be provided. The first phase development will include a 4,645-square-metre warehouse, a 4.86-hectare yard and an office building for SIP personnel and government agencies.