MMC hopeful on MRT3 projectJuly 27, 2017
MMC Corporation Bhd’s current construction order book of over RM15 billion is enough to keep the group busy for the next five years, its group managing director Datuk Seri Che Khalib Mohamad Noh said.
“Our construction business is good and can last us for the next five years. We have the MRT2, and hopefully, we’ll get the MRT3, which will keep us busy for the next 10 years. For our water projects, we hope to get the second phase of the Langat 2 (water treatment plant) project.
“We are also working with a Japanese construction company to provide solutions such as the rolling stock for the Asset Co portion of the high-speed rail. The MRT is proof that the project delivery partner format works and delivers ahead of time,” Che Khalib told reporters on the sidelines of the Invest Malaysia 2017 yesterday.
On talk of listing the group’s ports business, the managing director said there is no urgency now but moving forward, it is an option as MMC requires more funds to expand its ports.
“At the moment, we can manage the business but we are probably looking at the possible listing by the end of this year or early 2019,” he said.
Ask to comment on the upcoming East Coast Rail Link (ECRL) competing with the group’s Johor Port, Che Khalib said most ships would sail to the western part of Peninsula Malaysia and thus, he does not see any shipping traffic diverting from Johor Port to Kuantan Port (which is owned by IJM Corp).
“I believe the ECRL could complement our port by bringing more cargo to Johor. ECRL would be good for Penang Port, Pelabuhan Tanjung Pelepas, and Northport — that is the beauty of rail.
“And because MMC has a portfolio of ports, we can direct the cargo as needed to specific ports. Ports are all about connectivity, and the group’s portfolio gives us more connectivity,” Che Khalib said.
Concerning the removal of the cabotage policy on Sabah, Sarawak and Labuan on June 1, which previously blocked foreign ships — usually larger built vessels — from transporting cargo domestically, he said the movement of cargo is determined by shipping companies.
“There is more volume is in the central region, or south. So I don’t think ships will be going to Sabah and Sarawak if there are not enough loads. At the moment, there is no impact at all to our ports,” the MMC boss said.
This article first appeared in Malay Mail Money print version.