Sime Darby To Invest US$439.75 Million In Weifang Port Operations

From Amanina Mohamad Yusof WEIFANG (China), June 14 (Bernama) -- Sime Darby Bhd, Malaysia's biggest conglomerate, will invest US$439.75 million (RM1.4 billion) over the next three years to expand its port operations in Weifang, in Shandong province, China. The company has also allocated US$109.99 million (RM350 million) for further investment in the port's facilities in the future. "Our port business is one of our key expansion strategies in China. We have ambitious plans to grow and we will double our efforts to make speedy progress. "We want to be a leading port player in Shandong," President and Group Chief Executive Officer Mohd Bakke Salleh (left) told reporters at a media briefing here Thursday. Under the Weifang Sime Darby Port's five-year development plan, the company aims to double its total number of berths at the port, from the current 12 to 24 by 2017. Three berths, with a capacity of 20,000 MT, are currently under construction and are expected to be ready by next year. It also plans to increase its capacity to handle over 50 million MT of cargo annually over the next five years, from the current 18 million MT of cargo. The port handles more than 30 different types of cargo including raw salt, grain, coal, petroleum and liquid products. Weifang Sime Darby Port, located in the prime region of Bohai Sea's economic belt, is 50 km from Weifang City. It is also just 67 nautical miles to Longkou Port and 139 nautical miles to Tianjin New Port, the largest port in Northen China. Last year, the Weifang Port posted a turnover of around RM90 million and recorded a pre-tax profit of RM50 million. Meanwhile, Sime Darby Energy and Utilities, China Operations, Executive Vice President Timothy Lee Chi Tim said Weifang Sime Darby Port has been recognised by the Shandong Government as one of the Binhai Economic-Technological Development Area's (BEDA) four most important ports in the Yellow River Delta. "We will improve Weifang Port's capacities by expanding and expediting the construction of more berths, storage and other handling facilities," he added. BEDA was established in August 1995 to spur the economic growth of Shandong, and crucial to BEDA's masterplan is the construction of an 80km seaport logistics park with Weifang Sime Darby Port as its main freight hub, acting as the transfer and distribution centre for other feeder ports in the region. Apart from Weifang Port, Sime Darby also operates three other river ports in Jining, a prefecture-level city in Shandong province. The conglomerate has exclusive rights to develop and operate four coal ports in Jining with a combined capacity of 17.5 million MT a year. It also has the right to develop another three ports in Jining and one in Zaozhuang, which is just outside the Jining area. Meanwhile, at the same event, the company signed a memorandum of understanding (MoU) with five companies -- Downstream Logistics B.V.; Shandong Luzhong Distribution Co; Changshu Westerland Warehousing Co Ltd; Huadian Cooperation Weifang Power Generation Co Ltd; and DHL Global Forwarding Management (Asia Pacific) Pte Ltd. (picture) The Mou will see the five companies' commitment to utilise the Weifang Port facilities. Sime Darby has also inked a MoU with the People's Government of Weifang City that will see the government expediting all administrative processes such as licensing. (US$1 = RM3.18) Also seen was Weifang Mayor Liu Shuguang (right). (photoBERNAMA) MALAYSIA