Govt to study feasibility of RM200b Carey Island development

PORT KLANG (July 12): The new government will conduct a study to determine the feasibility of the proposed RM200 billion port and maritime city project on Carey Island, said Transport Minister Anthony Loke.

Loke said Port Klang Authority (PKA) will be asked to commission the study on the necessity for another port near Northport and Westports in Port Klang.

"The government does not operate ports anymore. The concession will be given to the private sector — but the feasibility studies will be driven by the government," he told a news conference.

"Right now, (the project) is actually at a very initial stage. There was no approval given by the previous government for a third port," he added.

The Carey Island port, if approved, will be driven by private initiative, said Loke.

"[But] we have not received any proposal, any quotation [from any firms on the project]," he said.

Meanwhile, PKA general manager K Subramaniam was upbeat about the need for Port Klang to expand — although the timing, the scale and the costs will need to be looked into.

"We have to move forward," said Subramaniam. "Development of ports is a long-term initiative. [But] any decision will go through the government, and we are keen to conduct the study," he said.

Talk of a third terminal in the Port Klang area has been going on for years, with mixed views among stakeholders over the proposal to build a gargantuan port on Carey Island with an annual throughput capacity of 30 million containers.

Under the proposal, the RM140 million port will be developed concurrently with a maritime city on the island, comprising industrial parks, free trade zones, and commercial and residential buildings.

In April last year, MMC Corp Bhd's unit MMC Port Holdings Sdn Bhd, and Sime Darby Property Bhd, signed a memorandum of understanding with India's largest private port operator, Adani Ports and Special Economic Zone Ltd, to study the feasibility of the developments on Carey Island.

The viability of the project has come into question after the previous Barisan Nasional government gave Westports Holdings Bhd the green light to undertake its RM800 million "Westports 2" expansion last year.

Carey Island is also home to the Mah-Meri Orang Asli tribe, who retained their unique culture and way of life despite a successful assimilation into the modern age.

The island is a tourist attraction that is famous for its seafood delicacies, as well as thriving traditional and cultural presentations of the locals. It is also home to oil palm plantations owned by Sime Darby Plantation Bhd.

In a related matter, Loke said the ministry will also kick-start a separate study to determine whether there is a need for a second Digital Free Trade Zone, as proposed by the Selangor state government recently.

"Right now we have Port Klang Free Zone (PKFZ).

"We want to drive the development of PKFZ, and then we can look into whether we can expand the operations of PKFZ to include a digital free trade zone — subject to negotiations and [feasibility] studies.

"A very initial discussion has been initiated between PKA and Malaysian Digital Economy Corp (MDEC), but there is no concrete decision as of now. The trade ministry has not received any proposal so far," he said. — theedgemarkets.com

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