T.A.G Marine Sdn Bhd is on the lookout for investors at the Kuala Linggi International Port (KLIP) in Malacca.
Managing director Datuk Wira Noormustafa Kamal Yahya noted that investors must have synergies with the business model of KLIP, noting that the project has attracted interest from many foreigners.
“I don’t want the investors to come in and dictate. I am sure of what I’m doing and I will do it according to my own style,” he said.
Works for the RM12.5 billion port is set to begin in Q1 2017, to be completed in 10 years, he added.
While Noormustafa revealed that he will finance the port’s development with Chinese investors, he declined to provide details on the shareholding structure.
The new port would bring back Malacca’s glory days as a regional trading hub during the 15th century.
Blessed with natural depth at 30m, Kuala Linggi is very conducive for servicing large tankers, he said.
“There will be no need for maintenance dredging and it is also suitable for shipbuilding and repairing.”
For the past 10 years, T.A.G Marine has been servicing large ships handling palm oil, crude oil, liquefied natural petroleum, liquefied natural gas (LNG) among others, said Noormustafa. The company is also “the first in the region to handle LNG transfer from ship to ship”.
“The RM12.5 billion KLIP is the extension of it in a bigger scale.”
Given Kuala Linggi’s strategic location, KLIP is expected to ease the traffic at one of the region’s busiest waterways.
“This chokepoint that sees about 100,000 of large tankers and other types of ships plying through annually is prone to accidents and ships are wary of the close quarter situation in this area,” he said.
“The Transport Ministry has gazetted KLIP not only as an industrial port and a bunkering hub, but also a port of refuge to aid casualty and vessel in distress.”
Launched earlier this month, KLIP will be developed on a 620-acre reclaimed site to offer repair, storage and bunkering services.
The latest development looking to capture Asia’s growing demand for oil and the waterways along the Strait of Singapore and the Strait of Malacca, the project is predicted to see a huge demand for port services.
Notably, traffic sailing through the straits, which is valued at US$600 billion in annual oil trade, accounts for one-third of the global oil demand.
Noormustafa also noted that the KLIP development will complement Singapore and not be its competitor.
“The pie is big enough and it all boils down to branding the area as a shipping hub, where the east meets west,” he said.
“For me, I am thrilled to do this for the country that will provide 6,000 job opportunities.”
Linggi Base Sdn Bhd, T.A.G Marine’s sister company will be the project’s master developer, added Noormustafa.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
