The development plan is part of the Malaysia-China Kuantan Industrial Park (MCKIP) project and will involve the construction of a new deep water terminal with a 200,000 dwt berth. The Guangxi group is also investing in three steel, aluminium processing and palm oil refinery plants, and in the infrastructure of MCKIP and the port is expected to feed materials into these projects.
Guangxi chairman Ye Shixiang was quoted as saying the group is confident of Kuantan Port's prospects, given its strategic location and the facilities that it provides. "The future development of MCKIP will rely a lot on Kuantan Port and with good port information, management and logistics, it will provide for a good sustainable development of the local economy," he said.
IJM Corp ceo Teh Kean Ming sees the partnership doubling Kuantan Port's current throughput of 15m tonnes by 2015 when the first phase of the expansion is completed. Work on the new port will begin in early 2014 and the first phase will cost about MYR1.5bn. IJM holds a 60% stake in the partnership while Guangxi holds the rest, which it is acquiring from IJM's wholly-owned subsidiary Road Builder (M) Holdings Bhd.
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