MMC Corp allocates RM2.21b to upgrade ports in Johor

MMC Corp allocates RM2.21b to upgrade ports in Johor
Business & Markets 2013
Written by Bernama
Monday, 13 May 2013 19:03


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KUALA LUMPUR (May 13): MMC Corp Bhd is allocating RM2.21 billion to upgrade its ports in Johor to attract more shipping companies to the southern gateway and to remain a competitive player in the shipping industry.

Group Managing Director Datuk Hasni Harun said the company is expected to spend RM1.6 billion on Port of Tanjung Pelepas (PTP) to increase its handling capacity to 10.5 million twenty-foot equivalent units (TEUs) a year next year from 7.7 million currently.

The company has allocated RM421 million for Johor Port to increase its capacity to 45 million freight weight tonnes (FWT) in 2015 from 35 million FWT currently, he told reporters after the company's annual general meeting today.

He said the expansion of PTP is to show the company's desire to bring the cargo business of AP Moller-Maersk Group's (Maersk), the port's 30 per cent shareholder, to PTP.

"Out of the seven million TEUs handled by PTP last year, about six million TEUs came from Maersk, a few million TEUs of whose cargo was also handled by Singapore's port.

"If our ports are ready in terms of capacity and efficiency, those few million TEUs handled by Singapore may be moved to PTP," he said.

Hasni said while PTP is planned to handle more containers, Johor Port's expansion will cater to the growing oil and gas business.

"We are redesigning our Johor Port so that we can do more business in the oil and gas sector," he said.

PTP and Johor Port hold a combined 42 per cent share of the port business in Malaysia.

Meanwhile, Hasni said the management will continue to look at new opportunities and leverage on the strong capabilities of its core business in the energy and utilities and engineering and CONSTRUCTION [] to bring the group to
a new height.

He said the company expects a steady performance this year driven by steady dispatch factor from Malakoff Corp Bhd's power plant and higher sales volume from Gas Malaysia Bhd under the energy and utilities division, and higher contribution from the Mass Rapid Transit (MRT) work under the engineering and construction division.

Hasni said the company is also committed to unlock the value of its vast landbank of over 1800 hectares in Iskandar Malaysia and is currently in talks with potential customers as well as joint venture partners to develop the area.

Moving ahead, he said the company is identifying new opportunities, underscored by its active roles in the MRT projects and potential participation in the recently announced Kuala Lumpur-Singapore high speed train, to increase its construction orderbook which currently stands at RM5.5 billion.

Meanwhile, on the delay of its subsidiary Malakoff Corp Bhd's listing on Bursa Malaysia, he said the suspension was due to the maintenance work at the Tanjung Bin power station and the shortlisting of the company in the recently announced 2,000 megawatt (MW) coal power station bidding by the Energy Commission.

"We want our power station to be tip-top during the listing and a potential procurement of an additional 2,000 MW to Malakoff's power generation profile," he said.

He added that the company is also bidding for power generation projects in Indonesia as well as the Middle East and North Africa in its effort to secure 10,000 MW total power generation capacity by 2020.

Currently, Malakoff has a power generation capacity of 5,000 MW. -- BERNAMA