Kuantan Port Consortium Sdn Bhd (KPC) has signed a new privatisation agreement with the government of Malaysia and Kuantan Port Authority whereby KPC is granted a new 30-year port concession in relation to the development, operation and management of Kuantan Port.
The agreement covers the existing Kuantan Port and a new deep water terminal adjacent to the existing port facilities, KPC’s parent company IJM Corporation said in a release.
The parties have also terminated the existing 30-year concession agreement signed back in 1997.
The new deep water terminal will be developed by KPC in two phases for a total investment of about MYR 3 billion (USD 808.3 million). The development involves the dredging of 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.
The development of the new terminal will be funded through borrowings and internally generated funds.
The new concession agreement started retroactively on June 1, 2015, and shall be extended for a further period of thirty years subject to the fulfillment of the Phase 2 development of the new terminal by December 31, 2039.
Image: Kuantan Port Authority