The most advanced project is in Malaysia, where the group recently signed separate memoranda of understanding (MoUs) with MMC Port Holdings Sdn Bhd (MMC Ports), and with MMC Ports and Sime Darby Property Berhad. Respectively, the MoUs cover the extension of Port Klang and the development of a maritime city on a greenfield site on Carey Island, which is located approximately 50 km southwest of Malaysia’s capital, Kuala Lumpur.

Commenting on the deals, Karan Adani, CEO of APSEZ, said: “Malaysia is very strategic to our global strategy, and with the straits of Malacca being a global shipping route, it helps us drive our global transhipment strategy further. With our new hub port at Vizhinjam [in southern India] on one side and Carey Island port on the other side [of the Malacca Straits], we will be able to give transhipment solutions to global shipping lines.” 

He added: “Malaysia, with its supportive, transparent and proactive government policies, is an ideal destination for investment. MMC and Sime Darby are valued partners, and with their involvement in these projects, it strengthens the case even more to make both these projects successful.” 

The tie-up with MMC Ports is highly strategic, in that the group is Malaysia’s largest port operator, controlling Port Tanjung Pelepas, Johor, Penang and the Northport complex in Port Klang. It also has a stake in Red Sea Gateway  terminal in Jeddah, Saudi Arabia, and owns Malaysia’s premier logistics group Kontena Nasional Berhad.

Feasibility studies will now commence on the port part of the project, which over three phases or so could result in facilities being developed to handle 30M TEU a year. Although this is almost double Port Klang’s existing capacity of approximately 16M TEU a year, there are signs that Malaysia’s biggest port is showing early signs of congestion. In 2016, its throughput exceeded 13M TEU, up almost 11% on the previous year.

In India, APSEZ’s operates container handling facilities at the west coast ports of Mundra and Hazira, and on the country’s east coast at Kattupalli, which is close to Chennai. In the nine months of the company’s 2017 fiscal year, which ended 31 December 2016, APSEZ’s cargo handling facilities handled 3.08M TEU and 126 Mt of cargo, up 28% and 11%, respectively, on the corresponding period of FY 2016.

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This complete item is approximately 300 words in length, and appeared in the April 2017 issue of WorldCargo News, on page 8. To access this issue download the PDF here.