06 April 2016

IJM: Kuantan Port upgrade crucial

  06 April 2016
KUALA LUMPUR: IJM Corp Bhd, the country’s most valuable construction firm, said the RM4 billion investment to expand Kuantan Port is crucial for the berthing of vessels of up to 200,000 deadweight tonnage (DWT).

Bigger vessels mean more business for IJM Corp, which is ramping up its construction, infrastructure and manufacturing activities. Chief executive officer and managing director Datuk Soam Heng Choon said the expansion includes building a new deepwater terminal that will attract top economies like the United States, China, Japan, Europe and India. Soam, a civil engineer by training, said Kuantan Port’s advantage lies in its strategic location facing the South China Sea, in the middle of the busiest shipping lanes in the world. “To the shipping community, this translates into significant cost savings and reduction in sailing time.

We expect more business from China,” he told the New Straits Times in an exclusive interview, here, recently. IJM Corp owns 60 per cent of Kuantan Port Consortium (KPC) Sdn Bhd, with the rest owned by Guangxi Beibu International Port Group (GBIPG). KPC has a 30-year concession since 1998 to manage, operate and develop Kuantan Port.

It entered into a new agreement on June 1, last year for the new deepwater terminal for 30 years until 2045 and for another 30 years until 2075, subject to government approval. KPC is spending more than RM3 billion to double the capacity while the government is constructing a 4.7km breakwater at the port, one of the longest in the world, and upgrading external infrastructure for around RM1 billion. Soam said the Main Market-listed IJM Corp’s investment in the port expansion is more than RM1 billion.



Read More : http://www.nst.com.my/news/2016/04/137613/ijm-kuantan-port-upgrade-crucial
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