Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on February 17, 2016.

 

KUALA LUMPUR: Sabah-based port operator and property developer Suria Capital Holdings Bhd will head the works for Sapangar Bay Container Port’s (SBCP) expansion, with the federal government already allocating RM800 million under the 11th Malaysia Plan (11MP) for the job.

Construction work for the first stage of the development will begin early next year and is expected to be completed by 2019, Suria Capital said in a filing with Bursa Malaysia yesterday.

The group said its wholly-owned subsidiary Sabah Ports Sdn Bhd had been made the implementing agency for the expansion programme of SBCP, which handles about 70% of Sabah’s container throughput currently. Sabah Ports is the operator for all seven of Sabah Ports Authority’s ports with a concession period of 30 years.

Suria Capital said that RM7 million will be used within the first year of 11MP’s implementation — being this year — and RM365 million in 2017.

“An amount of RM800 million has been allocated by the federal government under the 11MP, whereby funding under the first rolling plan will be staggered over two years, in 2016 and 2017,” said Suria Capital.

The expansion works will more than double SBCP’s handling capacity to 1.25 million TEUs (20-foot equivalent units) from 500,000 TEUs.

Suria Capital said the port currently handles about 300,000 TEUs a year, with an annual growth rate of 5% to 6%.

“For the initial phase, the project will involve the expansion of its berth length from the current 500m to 1.2km and stacking area from 15ha to 60ha,” it added.

“The positioning of SBCP as the transhipment hub augurs well with the port’s strategic location along the main shipping route of the East Asian sea trade and being at the centre of the East Asia Growth Area region.

“Leveraging on this advantage, the supply-driven approach is anticipated to attract international main line operators to hub at SBCP,” said Suria Capital.

Suria Capital shares closed up three sen or 1.39% to RM2.19 apiece yesterday, valuing them at RM622.48 million.

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