Certain approvals for Melaka Gateway have lapsed, reveals minister

KLANG (July 12): The proposed RM43 billion Melaka Gateway development — which was scheduled to commence operation by March 2021 — may be facing hiccups.

Transport Minister Anthony Loke said today that no sign of work have been seen at the development site near Pulau Melaka, and that the relating approvals for its maiden proposed facility — the Melaka International Cruise Jetty — has lapsed. 

“We notice there are a few issues with the [Melaka Gateway] project. There has not been any signs of development at all,” he told reporters at a press conference here.

“The technical approvals given by the Department of Environment and Department of Irrigation and Drainage accorded to KAJ Developments Sdn Bhd in 2016 [for the cruise jetty] have lapsed,” Loke said. 

“As of now, we haven't seen any development. Of course, they will not be able to do [start work] now, because the necessary approvals have expired,” he added. 

The Melaka state government first announced plans to build a deep-sea port under the Melaka Gateway project near Pulau Melaka with private entities KAJ Developments and PowerChina International, back in November 2016. 

At that time, KAJ Developments had raised eyebrows after it bagged a 99-year operating lease over the proposed port, as opposed to the usual 30-year term practiced for other deep-sea ports in the country.

The port is scheduled for completion by 2019, with the whole Gateway project to be ready by 2025, according to reports. 

According to Loke, KAJ Developments had been awarded “the rights to operate and manage port facilities and services at the integrated deep sea port Melaka Gateway at Pulau Melaka 2,3 and 4; and a cruise terminal at Pulau Melaka 1” by the previous transport minister.

The operating lease granted to KAJ is conditional upon KAJ commencing operations of the port by 2021, he said.

“The 99-year operational lease can only be activated if all facilities have been completed and begin operations by March 6, 2021, failing which the license will be invalid,” he added. 

Loke said that the Melaka Gateway is under the purview of the Melaka Port Authority, which is in turn answerable to the Port Klang Authority (PKA). 

“PKA’s management also manages the port authority in Melaka. “I have instructed PKA general manager [K Subramaniam] to issue a letter to KAJ Developments to request for their response and an update on the project status,” he added. — theedgemarkets.com

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