KUALA LUMPUR (April 12): FGV Holdings Bhd’s Pakistani unit is looking to team up with Johor Port Bhd to bid for the development of a clean bulk cargo terminal in Karachi Port, Pakistan.

According to a bourse filing this evening, the plantation group said that its subsidiary FWQ Enterprise (Private) Ltd had signed a Memorandum of Understanding (MoU) today with Johor Port to submit a pre-qualification application for the design, building, financing, operating and transfer of a clean bulk cargo terminal for Karachi Port, Pakistan.

Both FWQ Enterprise and Johor Ports are to create an unincorporated joint venture (JV) to submit the bid, with the MoU set to last 12 months from today.

“The parties are desirous to work together to make available their technical and commercial expertise, to collaborate and utilise their respective resources, capabilities and experiences, as well as to act in good faith, and do such things as may be necessary or expedient in relation to the submission of the proposal for the pre-qualification exercise for the project,” said the group.

The group added both FWQ Enterprise and Johor Ports will create a special purpose vehicle to carry out works for the clean bulk cargo terminal, provided the Karachi Port Trust agrees to select them as tender holders.

FGV’s wholly-owned subsidiary Felda Holdings Bhd maintains a 65% stake in the Pakistan-based FWQ Enterprise. The balance 35% is held by Westbury group, which is involved in areas such as shipping, storage and warehousing in Pakistan.

FGV noted that it maintains other JVs with the Westbury Group in Pakistan, as the group said FWQ Enterprises has set up a Liquid Cargo Terminal (LCT) in Port Qasim, winning the contract from the Pakistani Government in December 2004, and holds a 30-year lease on the LCT with an option for renewal for another 30 years.

Shares in FGV Holdings Bhd closed unchanged at RM1.25 — with 7.59 million shares changing hands — giving the group a market capitalisation of RM4.56 billion.