PORT KLANG AUTHORITY TO RESTRUCTURE RM3.8b DEBT

Authority has to repay RM222m yearly while its income is only RM266m

THE Port Klang Authority (PKA) wants to restructure its RM3.8 billion debt so as not to dip into its reserves, said Transport Minister Anthony Loke.

“In 2013, PKA borrowed RM3.8 billion from the Federal Government. The loan was undertaken with the Finance Ministry and repayment started this year,” he said at a briefing, here, yesterday.

PKA has to make a yearly RM222 million repayment to the Finance Ministry.

PKA’s annual income only amounts to RM266 million, of which RM80 million goes to administrative cost and RM6 million to maintenance.

“We are deriving an annual income of around RM80 million from renting out Port Klang Free Zone (PKFZ) industrial lots,” said Loke, adding that the utilisation rate was 85 per cent.

“We are looking to increase the utilisation rate,” he said, adding that the soon-to-be appointed board of directors would be tasked to do so.

The free zone also has an exhibition centre and a building slated to be a hotel.

“There is no operator for the hotel. Whether we still want to turn it into a hotel, the new PKFZ board will be asked to submit a proposal.”

Loke also said the incoming PKFZ chairman would not be a politician.

“We have proposed an accountant for the position. His monthly salary will not be more than RM10,000.”

On the vacant positions of PKA chairman and select board members, he said it would be acceptable to appoint politicians as it was a statutory body.