KL firm buys into US$535m Saudi port
project

KUALA LUMPUR: Malaysian conglomerate MMC Corp has signed a deal to take part in a joint venture project to develop a US$535 million (K1.57 billion) container terminal at Jeddah port in Saudi Arabia.
MMC said in a statement late last Monday it will pay a nominal sum of US$2 (K5.87) to acquire City Island Holdings, which has a 20% stake in the project.
The Saudi partners are Saudi Industrial Services Co, Xenel Industries Ltd and Saudi Trade and Export Development Co, who collectively hold the other 80% interest.
The consortium will develop and operate the port’s container third terminal which will have three berths with a total capacity of 1.5 million 20-foot equivalent units (TEUs).
It will also have a 30-year concession expiring in February 2039 to operate the terminal.
The deal “will enable MMC to expand its footprint internationally in the ports business and complement its strategic focus in Saudi Arabia and other countries in Middle East and North Africa.”
“MMC can leverage on its success in developing ports in Malaysia with the transfer of such expertise to its related overseas investments,” it said.
The Jeddah port is a major gateway for Saudi Arabia and a local trading hub for many countries in the Red Sea region, MMC said. An estimated 76% of containers going into Saudi Arabia go through Jeddah.
MMC, with interests in ports, utilities and construction, was also involved in the development of the US$30 billion (K88.1 billion) Jizan Economic City, located 725km south of Jeddah. - AFP