MMC unit granted 30-year extension to concession for Northport, Southpoint

KUALA LUMPUR: MMC Corp Bhd’s indirect subsidiary Northport (Malaysia) Bhd has been granted a 30-year extension to its concession for Northport and Southpoint in Port Klang, which ended in Dec 1, 2013, following a privatisation agreement signed among the port services provider, the government and Port Kelang Authority (PKA) yesterday.

In December 2011, the then listed parent NCB Holdings Bhd said it received approval in principle from the government for a 30-year and a 21year extension for Northport and Southpoint, respectively.

The privatisation agreement signed yesterday, however, stated that Northport Malaysia will hold the concessions for both Northport and Southpoint until Nov 30, 2043, wherein it is authorised to provide as well as operate, maintain, manage and control port operations.

At the signing, Northport was represented by its chairman, Datuk Seri Che Khalib Mohamad Noh, the government by Transport Ministry secretary-general Datuk Seri Saripuddin Kasim, and PKA by its chairman, Tan Sri Kong Cho Ha.

“We are delighted to have signed this agreement and to have the opportunity to continue working for the progress of Port Klang and the nation’s economic growth as a whole. We thank the government and PKA for their confidence in Northport and we are very positive that Northport will continue to contribute to make Port Klang, Asia’s Preferred Logistics Hub” Che Khalib said.

On Bursa Malaysia yesterday, MMC Corp fell 0.56% to close at RM1.79 with 739,100 shares done.