The first corridor includes Songkhla, Penang and Medan, which are already established international gateways with well-equipped seaports that can improve connectivity by sea—important for bulk shipments of goods—between Southern Thailand and Northern Malaysia and Sumatera, as well as provide onward shipping services to East Asia and Europe. While the Medan-Penang corridor is one of the most developed subregional corridors. The overall assessment in the Hat Yai-Penang-Medan corridor is that there are two distinct levels of logistics integration. The linkages between Hat Yai and Penang are quite well developed while on the other hand the links between Penang and Medan are more on a traditional or “archaic” basis. This does not mean that there is no logistics linkage; it only means that the type of logistics services available is a reflection of the type of trade between Penang and Sumatra.