A proposed port industrial city in Malaysia’s Carey Island costing MYR200 billion (US$45 billion) could become operational by 2025 once approved by the government.
The giant port city is envisioned to have a size of more than 100 square kilometers and to be located close to Port Klang, whose two terminals, Westports and Northport, have reached their capacity, according to the Port Klang Authority (PKA).
The authority said the new port will complement Port Klang, Malaysia’s largest container port and the world’s 12th busiest—and accommodate the expected increase in demand in the future.
The planned port complex would be built in phases and include free trade zones, residential and commercial developments, and other support infrastructure. Its expected capacity is about 30 million twenty-foot equivalent units (TEUs).
It would be servicing the Strait of Malacca, a key waterway which runs between Indonesia, Malaysia, and Singapore and is a major sea route for trade to and from Asia, connecting the Indian Ocean to the South China Sea and the Pacific Ocean.
There are also plans to construct two other ports along this waterway and in Malacca, which is less than two hours away from Carey Island. These are the Kual Linggi International Port and the Malaka Gateway.
Chinese capitalists are reportedly funding these Malacca projects, and they may also play a part in the Carey Island port city development, as Chinese ships regularly pass through the strait.
The Malaysian government said it is important to set up the logistics infrastructure to connect Carey Island’s industrial and commercial developments to the Port Klang Free Zone and Westports to support the expansion of Port Klang.
The port city project is seen by analysts to compete with the Port of Singapore, which handled 30.9 million TEUs in 2015, data from the Port of Singapore Authority indicated.
11th busiest box port
Meanwhile, Port Klang is expected to inch up one spot to 11th place in 2016 from 12th in 2015 in the World Container League, as it showed a vigorous performance last year in terms of container throughput and transshipment growth.
The port logged a 10.8% growth in container traffic in 2016 year-over-year, handling a total of 13.17 million TEUs.
It recorded growth of 3.6% in container throughput, and expanded 3.9% in terms of export throughput last year.
Of this, Northport handled 3.22 million TEUs, while Westports processed 9.95 million TEUs in 2016, according to PKA data.
In transshipment throughput, Port Klang lifted 9.07 million TEUs in 2016, up 14.3 % from 2015. Of this total, Northport handled 1.66 million TEUs, and Westports handled 7.41 million TEUs.
But PKA forecasts 2017 to continue to pose a challenge for the industry amid global economic uncertainties and upheavals in the shipping industry.
Photo: Hezery99
