KUALA LUMPUR – The port operators of Malaysia’s seven major federal ports generated a total income of RM32.46 billion between 2019 and 2023, according to Transport Minister Anthony Loke (Seremban-PH).
In a written parliamentary reply today, Loke explained that port operators’ income depends on the services offered at the ports and the volume of cargo handled.
He added that the operators are responsible for funding capital expenditure during their concession periods to develop the ports in accordance with pre-established agreements.
“It should be emphasised that all port development costs are fully borne by the port operators, through various means, including income generated from operations,” Loke said in response to a question from PAS MP Siti Mastura Muhammad (Kepala Batas-PN).
Loke further clarified that the federal government does not allocate funds for the development of the seven main federal ports.
The seven major federal ports in Malaysia are Klang Port, Johor Port, Tanjung Pelepas Port, Kuantan Port, Penang Port, Bintulu Port, and Kemaman Port.
On November 8, it was reported that Malaysia’s largest port operator, Westports Holdings Bhd, recorded a net profit of RM233.1 million for the third quarter ending on September 30.
This was a 19.5% increase from the previous year’s RM195 million net profit, driven by a rise in container volumes, with intra-Asia trade remaining a key contributor, the company said in a bourse filing.
The public-listed company’s revenue for the quarter also rose by 5.6%, reaching RM572.57 million, compared to RM542.31 million in the same period last year.
Meanwhile, Loke said the government is taking several preparatory measures to address potential competition from the Chumphon-Ranong land bridge megaproject, approved by the Thai Parliament on February 16.
The minister noted that Malaysia is focusing on strengthening the existing advantages of its port and logistics sector, emphasising that the performance of Malaysia’s ports provides business certainty and reduces exposure to risks, in contrast to the new, untested services in southern Thailand.
“Our federal ports will continue to actively implement development efforts to improve service quality, port productivity, and infrastructure capacity, and establish a green port aligned with ESG (environmental, social, and governance) principles,” he said.
In March, Loke stated that the land bridge project in Thailand is not a zero-sum game for Malaysia, highlighting opportunities for cooperation and mutual benefit between the two countries.
As for infrastructure, Loke explained that the land bridge project involves the construction of new deep-sea ports in Chumphon and Ranong, located in the Gulf of Thailand and the Andaman Sea. – November 11, 2024