Kuantan Port Consortium (KPC), a subsidiary of Malaysian construction firm IJM Corporation, has been granted a 30-year concession to develop, operate, and manage Kuantan port in Pahang, Malaysia.
The agreement, according to IJM, covers the existing port and a new deepwater terminal.
In line with the agreement, KPC has been privatised.
“A further 30-year extension will be granted upon the fulfillment of certain
development conditions,” IJM added.
This replaces a previous 1997 Privatisation Agreement.
KPC will develop the new deepwater terminal in two phases with a total investment cost of MYR3 billion (USD800 million).
While no timeline was given for the two phases, IJM stressed that development of the port and especially the new terminal, is “timely” as Kuantan is currently close to its full capacity.
The expanded Kuantan port will be a multipurpose port to serve various cargo requirements. The deepwater terminal enables the berthing of larger ships.
“The development involves the dredging of the harbour basin and navigational channel, reclamation works, construction of new berths and cargo storage yards, as well as provision of infrastructure facilities and utilities associated with port operations,” IJM said.
The development will be paid for with bank loans and internally generated funds, it added.