Sime to invest RM1.4b in Weifang operations

Sime Darby Bhd, Malaysia's biggest conglomerate, will invest RM1.4 billion over the next three years to expand its

port operations in Weifang, in Shandong province, China.



The company has also allocated RM350 million for further investment in the port's facilities in the future.



“Our port business is one of our key expansion strategies in China.
We have ambitious plans to grow and we will double our efforts to make
speedy progress.



“We want to be a leading port player in Shandong,” President and
Group Chief Executive Officer Datuk Mohd Bakke Salleh told reporters at
a media briefing here today.






Under the Weifang Sime Darby Port’s five-year development plan, the
company aims to double its total number of berths at the port, from the
current 12 to 24 by 2017.



Three berths, with a capacity of 20,000MT, are currently under construction and are expected to be ready by next year.



It also plans to increase its capacity to handle over 50 million MT
of cargo annually over the next five years, from the current 18 million
MT of cargo.



The port handles more than 30 different types of cargo including raw salt, grain, coal, petroleum and liquid products.



Weifang Sime Darby Port, located in the prime region of Bohai Sea’s
economic belt, is 50 km from Weifang City. It is also just 67 nautical
miles to Longkou Port and 139 nautical miles to Tianjin New Port, the
largest port in Northen China.



Last year, the Weifang Port posted a turnover of around RM90 million and recorded a pre-tax profit of RM50 million.



Meanwhile, Sime Darby Energy and Utilities, China Operations,
Executive Vice President Timothy Lee Chi Tim said Weifang Sime Darby
Port has been recognised by the Shandong Government as one of the
Binhai Economic-Technological Development Area's (BEDA) four most
important ports in the Yellow River Delta.



“We will improve Weifang Port’s capacities by expanding and
expediting the construction of more berths, storage and other handling
facilities,” he added.



BEDA was established in August 1995 to spur the economic growth of
Shandong, and crucial to BEDA’s masterplan is the construction of an
80km seaport logistics park with Weifang Sime Darby Port as its main
freight hub, acting as the transfer and distribution centre for other
feeder ports in the region.



Apart from Weifang Port, Sime Darby also operates three other river
ports in Jining, a prefecture-level city in Shandong province.



The conglomerate has exclusive rights to develop and operate four
coal ports in Jining with a combined capacity of 17.5 million MT a
year.



It also has the right to develop another three ports in Jining and one in Zaozhuang, which is just outside the Jining area.



Meanwhile, at the same event, the company signed a memorandum of

understanding (MoU) with five companies -- Downstream Logistics
B.V.; Shandong Luzhong Distribution Co; Changshu Westerland Warehousing
Co Ltd; Huadian Cooperation Weifang Power Generation Co Ltd; and DHL
Global Forwarding Management (Asia Pacific) Pte Ltd.



The Mou will see the five companies' commitment to utilise the Weifang Port facilities.



Sime Darby has also inked a MoU with the People's Government of
Weifang City that will see the government expediting all administrative
processes such as licensing. -- Bernama