IJM, China Harbour to develop international logistics hub in Kuantan
03 Aug 2022
IJM Corporation Bhd has entered into a strategic partnership with China Harbour Engineering Company (CHEC) to develop an integrated mixed development and logistic hub, Malaysia-China Kuantan International Logistics Park (MCKILP).
The partnership marked IJM’s first foray into the industrial and logistics market to meet the growing logistics demands in the east coast region.
The joint venture (JV) agreement was signed between CHEC and IJM’s indirect subsidiary, Asas Panorama Sdn Bhd that is 60 per cent owned by IJM Land Bhd while Guangxi Beibu Gulf International Port Group Co Ltd held the remaining 40 per cent.
CHEC will hold a 51 per cent stake in the new joint-venture company while Asas Panorama will hold the remaining 49 per cent.
Malaysia-China Kuantan Industrial Park (MCKIP) chairman Lee Chun Fai said the agreement marked an important milestone for the company as it embarked on a strategic partnership with CHEC to design, develop and operate MCKILP.
“I am excited for the opportunities that MCKILP will bring to the East Coast Economic Region (ECER).
“Its development is extremely timely and will provide critical infrastructure that will enhance the region’s logistics and supply-chain capabilities.
“Together with MCKIP 1 and 2, we envision MCKILP’s complement to the industrial ecosystem, catalysing more investments to the region in the future,” said Lee who is also the deputy chief executive officer and deputy managing director of IJM.
MCKILP will be developed on a proposed 640-acre site in MCKIP 3.
The mixed property development and logistics hub will comprise light and medium industrial, logistics and warehousing, residential and commercial components.
A collaboration agreement for a proposed construction JV company was also signed between CHEC and IJM Construction Sdn Bhd.
The JV company will undertake construction works for the main infrastructure and facilities in MCKILP.
“We are looking forward to working with IJM and Guangxi Beibu to realise the tremendous opportunities this project offers.
“Notably, the JV will tap on the expertise of the respective shareholders and we are indeed honoured to have such esteemed partners,” said CHEC chief financial officer Ou Weihui.
Source: NST
