This article first appeared in The Edge Financial Daily on May 16, 2017

KUALA LUMPUR: Northport (Malaysia) Bhd, an indirect wholly-owned subsidiary of MMC Corp Bhd, has signed a memorandum of understanding (MoU) with Weifang Sime Darby Port Co Ltd, a China-based subsidiary of Sime Darby Bhd, to establish a sister port relationship.

Under the MoU, the two ports will cooperate in port management and facilitate halal trade shipment between Malaysia and China. Weifang Sime Darby Port operates Weifang Port in Shandong, China.

“The cooperation and collaboration for the establishment of a sister port relationship is aimed at boosting the roles of both ports in conjunction with the 21st Century Maritime Silk Road and the One Belt, One Road initiatives,” said Northport chairman Datuk Seri Che Khalib Mohamad Noh in a joint statement yesterday.

The exchange ceremony was witnessed by Prime Minister Datuk Seri Najib Razak in Beiing on Sunday.

Weifang Sime Darby Port and Northport said both ports will share experiences, capabilities and resources in the fields of port management and related activities. They will also carry out joint commercial and promotional activities and establish the necessary facilities to attract companies in the shipping and related industries in Malaysia and China.

Sime Darby president and group chief executive officer (CEO) Tan Sri Mohd Bakke Salleh said the partnership has great potential to capture a slice of the fast growing halal market. “Halal is big business and this partnership aims to capture a market that is growing by 10% a year. Weifang Port is strategically located in the prime region of the Bohai Sea economic belt, offering a major access into China’s hinterland.”