IJM to invest $628m on deepwater terminal at Kuantan Port

Malaysia-based Kuantan Port operator IJM Corporation Bhd will invest about MYR2bn ($628m) to build a new deepwater terminal for the berthing of vessels of up to 200,000 dwt.

Construction of the new terminal is expected to commence in the first quarter of next year and be completed within 24 months, IJM ceo and md Teh Kean Ming was quoted as saying in local media.

The new terminal will double the capacity of the multipurpose port to 52m freight tonnes from the current 26m.

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

Construction will be funded by the proceeds from IJM's 40% stake disposal in Kuantan Port to Guangxi together with some degree of internal funding. The $102m IJM-Guangxi deal is expected to be finalised within the next three months.

IJM will build the terminal under the first phase with the work mainly undertaken by the company as they have necessary construction expertise.

Kuantan Port, which was previously run by the Kuantan Port Authority, was privatised in 1998 and is now operated by Kuantan Port Consortium Sdn Bhd.

Posted 04 July 2013

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Vincent Wee

Asia Editor, Seatrade Maritime News

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