ASEAN Ports Association Malaysia (MAPA)

IJM Corporation Bhd, the operator of Kuantan Port, will invest about RM2 billion to build a new deep water terminal for the berthing of vessels of up to 200,000 deadweight tonnage.

IJM Chief Executive Officer and Managing Director, Datuk Teh Kean Ming said construction of the new terminal is expected to commence in the first quarter of next year, with a 24-month completion period.

Once ready, he said the new terminal will double the size of the multipurpose port, in terms of capacity to handle 52 million freight tonnes of cargo, from the current 26 million.

“We are currently looking at the final design plan. Once our Chinese partner, Guangxi Beibu Gulf International Port Group Co Ltd, come on board in October this year, we can decide on further specifications.

“The proceeds from IJM’s 40 per cent stake disposal in Kuantan Port to Guangxi, will be used to fund the construction, together with a portion of internal funding,” Teh told Bernama.

The IJM-Guangxi sale and purchase deal of about US$102 million (about RM323.08 million), is expected to be finalised within the next three months.

Teh said the new terminal will be constructed with a water depth of 16 metres, with plans in place to dredge the waters to two more metres, in the second phase of development.

“We will construct the terminal under the first phase. The construction works will be mainly undertaken by IJM, as we have the expertise,” he added.

The expansion of Kuantan Port is part of the Malaysia-China Kuantan Industrial Park (MCKIP), in which Guangxi will invest more than RM7 billion directly or via joint ventures with Malaysian companies.

Kuantan Port is situated about 25 kilometres to the north of Kuantan city and faces the South China Sea on the east coast of Peninsular Malaysia.

Previously run by the Kuantan Port Authority, it was privatised in 1998, and is now operated by Kuantan Port Consortium Sdn Bhd.BERNAMA

Port Klang, which is projected to handle 10.4 million twenty-foot equivalent units (TEUs) this year, may have a third port in the next five to six years to help meet the growing demand, Deputy Minister of Transport Datuk Abdul Aziz Kaprawi said.

Currently the existing port operators, Northport and Westports, are still able to meet the demand and cater to the needs of shipping lines, he said.

“The third port is part of the Port Klang Development Master Plan to strengthen the world’s 12th busiest port in the future,” he said at a press conference on the sidelines of the ‘Asia – Engine for Growth’ logistics forum and exhibition here today.

Asked if there any plans to increase Port Klang’s tariff structure to be on par with neighbours’, Abdul Aziz said there is no tariff revision at the moment.

“We are trying to offer competitive rates to encourage more vessels to Malaysia,” he said.

The current handling charges for a 20-foot and a 40-foot container are RM230 and RM345 respectively, while transshipment costs RM140 for a 20-foot box and RM210 for a 40-foot box.

The deputy minister said the government is committed to continuing to develop and expand ports in the country including to deepen and widen the entrance to the Kuantan Port, which faces the South China Sea.

“We are going to provide an integrated multi-modal transport system, this can be seen in the efficient highway system we have in place and the double-tracking rail network that is currently being undertaken by the government,” he said.

Abdul Aziz said the government will continue to give strong support to realise Port Klang’s vision to remain the national load centre and be the region’s most preferred logistics hub.

“Both terminals at Port Klang have purchased hybrid equipment in line with the government’s green technology initiative to enhance productivity and efficiency as well as to promote a green environment,” he said.

Port Klang, the premier container port in Malaysia, handled over 10 million TEUs last year.BERNAMA