The Port Klang Authority (PKA) and Northport (Malaysia) Bhd have signed a 30-year extension of the concession agreement covering Northport and Soutpoint at Port Klang.
Northport was formed from the merger of Klang Container Terminal (KCT) and Klang Port Management Sdn Bhd (KPM) in 2001. In January 2016, MMC Corporation Berhard through its wholly-owned subsidiary, MMC Port Holdings Sdn Bhd (MMC Ports) took over the ownership of Northport, which operates container and bulk/general cargo facilities at port Klang.
The 30-year extension was signed between Northport, the Government of Malaysia and Port Kelang Authority (PKA) in Kuala Lumpur today. Dato’ Sri Che Khalib Mohamad Noh, Chairman of Northport represented the Company while Datuk Seri Hj. Saripuddin Hj. Kasim, Secretary General, Ministry of Transport Malaysia and Tan Sri Dato’ Seri Kong Cho Ha, Chairman of PKA signed the agreement on behalf of the Government and PKA respectively, witnessed by Dato’ Sri Liow Tiong Lai, Minister of Transport Malaysia.
“We are delighted to have signed this agreement and to have the opportunity to continue working for the progress of Port Klang and the nation’s economic growth as a whole. We thank the Government and PKA for their confidence in Northport and we are very positive that Northport will continue to contribute to make Port Klang, Asia’s Preferred Logistics Hub” said Dato’ Sri Che Khalib.
The agreement gives Northport the security of tenure to expand its facilities. In 2017, Port Klang handled 11.9M TEU, the majority of which (9M TEU) was handled at Hutchinson’s Westports facility, altough its throughput declined from almost 10M TEU in 2016 as some business was lost to Singapore.
In recent years Westport has grown faster than Northport, and wits its CT9 expansion now completed Westports has an annual capacity of 15M TEU. The terminal has also recently secured approval from the government to embark on Phase 2 development where its capacity will be doubled to 30 million TEUs with the development of CT10 to CT19 by 2035.
Northport has upgraded its Wharf 8 to handle 18,000 TEU vessels, and now has a capacity of 5.8M TEU. With its concession extension secured Northport “is currently embarking on plans to upgrade and replace existing quay cranes and yard handling equipment” the PKA noted.
It remains to be seen whether MMC Port Hoidings will push for additional capacity at Northerport. MMC also operates the Port of Tanjung Pelepas Sdn Bhd (With APM Terminals), Johor Port Berhad, Penang Port Sdn Bhd, Tanjung Bruas Port Sdn Bhd, Kontena Nasional Berhad and JP Logistics Sdn Bhd. It also has a stake in Red Sea Gateway Terminal Company Limited in the Jeddah Islamic Port, Saudi Arabia.
Pictured at the Northport lease extension signing ceremony (from left) Capt. K. Subramaniam, General Manager of Port Klang Authority; Tan Sri Dato Seri Kong Cho Ha, Chairman of Port Klang Authority; Datuk Seri Hj Saripuddin Hj Kasim, Secretary General, Ministry of Transport Malaysia; Dato’ Sri Liow Tiong Lai, Minister of Transport Malaysia; Dato’ Sri Che Khalib Mohamad Noh, Chairman of Northport (Malaysia) Bhd; Ian James, Director of Northport (Malaysia) Bhd and Dato’ Azman Shah Mohd Yusof, Chief Executive Officer of Northport (Malaysia) Bhd.