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Port operating companies and several port authorities in the country are not
in favour of the move by the Ministry of Transport to set up the Malaysian
Ports Commission.
Several port operating companies and regulatory agencies contacted said they
were opposed to the move and had made known their views to the Ministry
which despite the opposition is determined to proceed with the MPC.
The port operators were commenting on a recent announcement by the Minister
of Transport recently that government is setting up the Malaysia Ports
Commission (MPC) to bring all federal port authorities under one umbrella.
The Minister, Datuk Seri Chan King Choy said the setting up of the MPC would
pave the way for funds from all local ports to be channelled into strategic
development projects.
It is understood that the Ministry of Transport, which had planned to set up
the ports commission in 2000, has reactivated the idea and is pushing ahead
to form the Commission despite objections from which various port
authorities as well as private port operating companies.
Port sources said it was somewhat galling to hear the Minister saying that
the funds from all the port authorities would be channelled into strategic
developments projects.
“At the moment a so-called strategic development project that has gone awry
is the development of the Port Klang Free Zone on Pulau Indah and has become
a financial liability for Port Klang Authority,” said a source.
According to industry sources the Free Zone located at the hinterland of
Westport is having difficulty attracting users to its 512 standard size
warehouses that have been built neither meeting industry requirements nor
warehouse building specifications.
Sources added the Jaffa International of Dubai which manages the Free Zone,
has been burdened with the task of marketing the Free Zone which is owned by
Port Klang Authority.
“The move to set up the MPC paving the way for funds from all the port
authorities appears to be clearly aimed at bailing out Port Klang Authority,
which faces severe financial burden arising out its commitment on the
development of the Port Klang Free Zone,” said a port source.
PKA bought 999.5 acres of land in Pulau Indah to be developed in a free zone
distripark from Wijaya Baru Global Bhd for RM1.09 billion, which is payable
in seven installments beginning this year.
In addition the port authority, a regulatory agency, committed itself to
further RM1.82 billion for development of the zone.
It is understood by taking over the assets of the various port authorities
the Malaysian Ports Commission would be richer by more than RM2 billion from
which the liabilities of PKA are expected to be defrayed.
PortsWorld
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