by NG MIN SHEN  and pic by MUHD AMIN NAHARUL

MMC Corp Bhd plans to complete the restructuring of its ports, seek revision of the handling tariffs and unlock further values before listing its port assets on Bursa Malaysia Bhd.

MMC group MD Datuk Seri Che Khalib Mohamad Noh said plans are already underway to list the firm’s largest revenue contributor either at the end of 2018 or early 2019.

“We are also looking at the tariff revision with the government. Let us settle all these first. Everything is on track for the restructuring of the ports. There’s no urgency for us to do it now,” he said when met at the Invest Malaysia 2017 conference in Kuala Lumpur yesterday.

MMC is the country’s largest owner of port assets in the country. Its assets include Northport (M) Bhd, Pelabuhan Tanjung Pelepas Sdn Bhd (PTP), Johor Port Bhd and Penang Port Sdn Bhd.
Early this year, MMC purchased a 70% stake in KMB Seaport Sdn Bhd — the operator of Tanjung Bruas Port in Melaka — for RM21 million cash. The ports and logistics assets contribute about 77% to MMC’s revenue.

Tariff revision for container handling items is important for port operators to project their revenues and expansion planning.

The Transport Ministry approved in August 2015 a two-phase terminal handling rates of 15% each for Port Klang Authority after 14 years. The first phase took effect on Sept 1, 2015, and the second will come into force on Sept 1, 2018.

The handling rates upward revision for Port Klang will benefit Northport. Port tariff is regulated by the respective port authority. The Penang Port tariff has been in effect since May 1, 2015, according to Penang Port’s website.

In May this year, Suria Group requested for a tariff review to Sabah Ports Authority after it remained the same for 30 years.

Meanwhile, MMC is working with a consortium of Japanese companies to participate in the assets company (AssetsCo) tender for the Kuala LumpurSingapore High-Speed Railway (HSR) project.

“We are working with a Japanese consortium to provide Japanese solutions on the systems side, so we’re actively looking into the AssetsCo part of the HSR project,” Che Khalib said.

MMC has been successful as a project delivery partner (PDP), Che Khalib said, pointing to the firm’s track record in completing the country’s mass rapid transit (MRT) project.

“The government is also exploring the possibility of having a PDP for the AssetsCo. Our MRT project is a proven case where the PDP works in terms of completing the project on time. Budget-wise, I wouldn’t want to shout about (completing the project) below budget. We can maintain the budget,” he said.

The tender for the AssetsCo, expected to be called during the fourth-quarter of this year, is said to be among the world’s largest, according to MyHSR Corp Sdn Bhd, the agency which oversees the HSR project.