Inks MoU on feasibility study with MMC Ports, Signs another MoU with MMC Ports & Sime Darby Property to develop an integrated Maritime city in Malaysia
Editor’s Synopsis
- Adani Ports signs MoU with MMC Ports to set up a container port in Carey Island, Malaysia
- The port will be dominated by container infrastructure
- The proposed port to be a part of Port Klang’s extension in Malaysia
- Adani Ports has also signed another MoU with MMC Ports and Sime Darby Property to develop an integrated maritime city in Malaysia
- Adani Ports & SEZ is India’s largest integrated port infrastructure company
Ahmedabad, India/Kuala Lumpur, Malaysia, 3 April 2017 – Adani Ports and Special Economic Zone Ltd (APSEZ), India’s biggest private port operating firm, will begin a feasibility study on building a greenfield multi-purpose port mainly for handling containers at Carey Island in Malaysia’s Selangor state, about 50 kms southwest of capital Kuala Lumpur.
The feasibility on developing a mega container handling port project on Carey Island as an extension of the existing Port Klang has been flagged off with the signing of a Memorandum of Understanding (MoU) between APSEZ and MMC Port Holdings Sdn Bhd, a wholly-owned unit of MMC Corporation Berhad (MMC), one of Malaysia’s top utilities and infrastructure group with diversified businesses ranging from ports and logistics, energy and utilities and engineering and construction.
“Malaysia is very strategic to APSEZ global strategy and with straits of Malacca being a global shipping route it helps us to drive our global transhipment strategy further. With Vizhinjam port on one side Carey Island port on the other we will be able to give transhipment solutions to global shipping lines. Malaysia with its supportive, transparent and proactive government policies makes it ideal destination for investment. MMC and Sime Darby are valued partners and with their involvement in these projects strengthens the case even more to make both these projects successful.” said Mr. Karan Adani, CEO - APSEZ
Simultaneously, MMC Port Holdings, Sime Darby Property Berhad and APSEZ have signed a separate MOU to study the feasibility of developing an integrated maritime city on Carey Island to support the planned new port.
The MOU was signed by MMC Port Director Dato' Sri Che Khalib Mohamad Noh, Sime Darby Property Managing Director Dato’ Jauhari Hamidi and APSEZ’s President of Business Development Capt. Sandeep Mehta.
Apart from developing and running India’s biggest private port located at Mundra in the north-western state of Gujarat, APSEZ also is the country’s biggest container handler outside state control. The firm operates container handling facilities at its flagship Mundra Port as well as in Hazira Port, both in Gujarat on India’s western coast and at Kattupalli near Chennai in Tamil Nadu on the eastern coast.
APSEZ will soon start operating a new container handling facility it has built at Kamarajar Port at Ennore near Chennai. The firm is also building a mega container transhipment port at Vizhinjam on India’s southern tip located in Kerala’s capital Thiruvananthapuram.
Malaysia, which is South East Asia’s third largest economy, is looking to boost investments and growth through liberalisation. The overall infrastructure of Malaysia is one of the most developed in Asia and competes with some of the best developing countries of the world. Malaysia is also known for its quality roads, quality of port infrastructure and quality of air transport infrastructure.
Dato’ Sri Che Khalib, who is also Group Managing Director of MMC Corporation, added, “MMC Port, Adani Ports and Sime Darby bring with them the necessary expertise to make this project a success.”
“MMC Port is proud to work with Adani Ports and Sime Darby Property, to drive this significant port development, which will bring substantial economic benefits to Malaysia”, said Dato’ Sri Che Khalib. “Our ports are located right in the shipping lane and all ships must pass through Malaysian ports regardless, which makes the country a suitable regional centre for the logistics hub”, he added.
Under the one-year MOU, MMC Port, Sime Darby Property and Adani Ports will collaborate and undertake the feasibility study for the Carey Island Port Project and the supporting integrated Maritime City.
“This MOU reinforces our belief in the strategic value of our land. The port and maritime city could spur the development of southern Selangor’s industrial belt further and Sime Darby is well positioned to support this vision,” said President and Group Chief Executive Tan Sri Dato’ Seri Mohd Bakke Salleh.
MMC Port Holdings is Malaysia’s largest port operating group and currently runs 5 terminals - Pelabuhan Tg Pelepas Sdn. Bhd., Johor Port Berhad, Northport (Malaysia) Bhd, Penang Port Sdn. Bhd., as well as a 20% stake in Red Sea Gateway terminal in Jeddah. MMC Port also operates two big logistics companies, Kontena Nasional and JP Logistics.
Sime Darby Property is a wholly-owned subsidiary of Sime Darby Berhad, a Malaysia-based diversified multinational involved in key growth sectors such as plantation, industrial equipment, motors, property and logistics. Sime Darby Property is involved in property development, property investment and asset management, hospitality and leisure, with assets in Malaysia, Australia, Singapore, Vietnam and the United Kingdom.