NORTHPORT, POIC IN SISTER PORT DEAL
Companies look at developing trade routes within Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area
NORTHPORT (Malaysia) Bhd has signed an agreement with POIC Sabah Sdn Bhd for the establishment of a sister port relationship to boost trade links and cargo flows at their ports.
Northport is one of Malaysia’s largest port operators and a subsidiary of MMC Corp Bhd.
State-owned POIC, meanwhile, is building a container terminal at its industrial park in Lahad Datu, Sabah.
The strategic collaboration agreement will also look into developing trade routes within Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA).
Northport chief executive officer Datuk Azman Shah Mohd Yusof said he was confident the alliance would play a big role in facilitating trade, particularly in BIMP-EAGA.
“We believe that our strategic locations along the busy Straits of Malacca and BIMP-EAGA trade route will provide us with greater competitive advantage in this very challenging port and shipping industry,” he said.
The partnership also seeks to jointly facilitate trade of halal goods between Malaysia and neighbouring countries, while POIC will have access to training opportunity via Northport International Centre of Excellence.
Azman said Northport’s 118 years experience in managing one of Malaysia’s major multipurpose gateway ports would benefit POIC, especially for its new container terminal’s operation.
“Northport, on the other hand, will benefit from POIC’s experience in developing industrial parks and handling bulk cargo operations to support the trade requirements of their investors,” he added.
POIC chief executive officer Datuk Dr Pang Teck Wai said the deal would be part of efforts to increase trade through ports in the state.
“For trade flows to happen, we need a major port to collaborate with because Main-line Operator (MLO), for instance, will not come to our port and they are unlikely to go to port in Southern Philippines, Kalimantan or Sulawesi.
“Thus, the pact signifies a strong commitment for us to mutually exploring investment and business potentials as well as build capacity and skills for the purpose of increasing port efficiency.”