Malaysia Plans Port City

Malaysia has announced plans for a port and associated industrial city covering an area of over 100 square kilometers (39 square miles). The port is expected to have capacity for 30 million TEUs annually.

According to Tan Sri Kong Cho Ha, chairman of Port Klang Authority and Malacca Port Authority, the 20-year project will involve integrated port infrastructure, ship repair facilities, industrial parks, free trade zones, commercial and residential buildings.

The Star reports Kong saying that Port Klang is very congested and another deep-sea port is needed. “If we do not do anything now, we will continue to play second fiddle to Singapore and will not get a share of the bigger pie in future,” he said. Kong highlighted that 80 percent of the maritime trade between the East and West passed through the Straits of Malacca.

Last year, Port Klang, the world’s 12th busiest container port, handled 13.2 million TEUs, a rise of 10.8 percent over 2015. Its maximum capacity is 16 million. In comparison, the Port of Singapore handled 30.9 million TEUs.

However, the plans have been met with skepticism by leading analyst Drewry. The Star reports Neil Davidson, senior analyst Ports and Terminals at Drewry, expressing concerns about over-capacity, partly because Singapore is planning a new port complex at Tuas.