LANGKAWI: The Kuala Linggi International Port expansion plan has reached a key milestone following the awarding of RM800 million contract to CCCC Dredging Southeast Asia (CDSEA) to undertake reclamation works.
The expansion, known as the Linggi Base project, involves reclaiming 250ha of land and is expected to begin by the third quarter of this year.
KLIP signed the Letter of Award (LOA) to CDSEA recently through its subsidiary, Linggi Base Sdn Bhd (LBSB).
The LOA document exchange between both companies was held during the Langkawi International Maritime and Aerospace exhibition 2023 (Lima ’23) in the presence of Prime Minister Datuk Seri Anwar Ibrahim.
KLIP was represented by its group chief executive officer Datuk Hishammudin Hasan while CDSEA was represented by its managing director Yang Hongzhou.
Present were Transport Minister Anthony Loke, Melaka Chief Minister Datuk Seri Ab Rauf Yusoh and KLIP executive chairman Tan Sri Dr Noormustafa Kamal Yahya and chairman Tun Khalil Yaakob.
Noormustafa said KLIP had started a tender exercise for the reclamation works in May 2022.
“The exercise drew the interests of 24 industry players from Europe, Japan, China, as well as Malaysia. Five companies were selected for the final evaluation and CDSEA emerged as the eventual winner due to its strong credentials as the biggest dredging company in the world,” he said.
Meanwhile, Hishammudin said the creation of the reclaimed island, which has gone through all the necessary studies and assessments, as well as obtaining the required governmental approvals, is estimated to cost RM1.4 billion.
He said the Gross Domestic Cost (GDC) for the whole development was estimated at RM15 billion, whilst Gross Development Value (GDV) will be worth RM100 billion.
“We will generate foreign exchange earnings for the nation. On top of our current contribution, upon completion, our expansion will further create 6,000 to 10,000 new jobs from middle to high-income job opportunities of various talents and set skills.
“Linggi Base will create an economic impact zone within a 100km radius. This area will prosper. InsyaAllah (God willing),” he said.
Hishammudin said once the expansion project was completed, Linggi Base will be connected to the mainland by a 700m-long bridge and will be able to handle ships with a draft of up to 22m at the outer berth, as well as equipped with facilities for cargo handling, storage and transhipment.
“The water depth of the port ranges between 25m and 55m within the port limit, making ours one of the deepest ports in the country,” he said.
Hishammudin added that the expansion was in line with the projected growth of traffic plying through the Straits of Malacca doubling to 200,000 vessels annually by 2030.