Kuala Linggi International Port to create 6,000 jobs, attract RM15b investments

THE Kuala Linggi International Port (KLIP) will see an expansion of an additional 251ha of reclaimed within the vicinity of the Sungai Linggi, land 60km north of Melaka Historical City. 

It is set to create 6,000 new jobs, as well as attract RM15 billion in both domestic and foreign direct investments. This development is also foreseen to benefit Melaka through the spill-over effect from the marine ecosystem on the hand-standing marine infrastructure.

With traffic plying through the Straits of Malacca set to double to 200,000 annually by 2030, TAG Marine Sdn Bhd (TMSB) executive chairman Tan Sri Dr Noormustafa Kamal Yahya said the expansion will provide much-demanded facilities such as oil storage and blending, ship repairs, fabrication and other client-driven solutions.

“With the Straits of Malacca’s strategic location and the growing demand among ship operators, our expansion is a natural progression.

“KLIP’s expansion will also address the International Maritime Organisation’s concern, which is giving impact on the global maritime industry that can be caused by congestion in the Straits with the choke point at the narrowest point between Tanjung Piai and Iyu Kecil, before western approaches of Singapore Straits and Philips Channel,” he told The Malaysian Reserve (TMR) recently.

With a GDV estimated to be at RM100b, we are expecting to generate a substantial GNI from forex earnings of foreign projects and GDP from local industries, Noormustafa says

The first reclamation contract, which will be awarded within the first quarter of this year, will be the first contract to be awarded after 15 impact studies are conducted and received the necessary approval for the construction of the port from the federal government.

TMSB shortlisted five international companies for the project with companies from China, the Netherlands and Belgium showing interest.

KLIP began its journey in 2006 as the first and largest industrial port in the region, operated by TMSB. The gazetted port limit covered an area of 45 sq nautical miles, equivalent to 180 sq km of water column off the coast of Kuala Sungai Linggi. Upon obtaining the port limit approval from the Marine Department to operate KLIP in 2006, TMSB went on to develop the port from a minor landing place for barter trading crafts and fishing vessels into a thrivin In 2017, following the success of the offshore seaport, the government granted the extension to an area equivalent to 30km long and 10km at its widest.

Linggi Base will be connected to the mainland by a 700m long bridge and will be able to handle ships with a draft of up to 22m at the outer berth, as well as equipped with facilities for cargo handling, storage and transhipment. The water depth of the port ranging from 25m to 55m within the port limit making it the deepest port limit in the country.

“The creation of the reclaimed island will realise KLIP’s holistic offerings as a sustainable industrial port, bunkering hub and port of refuge situated on the busy Straits of Malacca. Among the key features of the reclaimed island include a tank farm, shipyard, cargo wharf and fabrication yard.

“With a gross development value (GDV) estimated to be at RM100 billion, we are also expecting to generate a substantial gross national income (GDI) from foreign exchange earnings of foreign projects and GDP from local industries,” Noormustafa said.

Strategic Location

Strategically located between other major shipyards, KLIP will be able to provide good marine support services to ships passing through the Straits of Malacca and is set to become Malaysia’s premier industrial port.

It is an extension at sea of the 16-year-old KLIP operating — lightering services of various liquid bulk and gas cargo involving some of the largest ships in the world.

“KLIP stands to benefit not only from its Malaysian domain but also from the mani-fold synergy to be derived from current operations,” Noormustafa added.

The extension of KLIP will also contribute to the development of Kuala Linggi, from a rural town to a maritime city with greater facilities and neighbourhoods.

This will improve the livelihoods of the locals, especially small business operators who are engaged in activities related to the port, as well as other indirect small businesses that are positively affected by the development

of this port including food business operators, retail outlets and others. It will also have a positive impact on the tourism sector, as it will make Kuala Linggi a more attractive destination for tourists in the long term.

The Man Behind KLIP’s Success

Noormustafa has a doctorate in business administration from the Collegium Humanum Warsaw Management University and a BSc in Nautical Studies (UK). He is a member of the Chartered Institute of Transport.

At the former, he wrote a thesis on the development of the natural port.

Noormustafa, 61, began his career at sea in 1980 as the first batch of liquefied natural gas (LNG) apprentices at the Malaysia Maritime Academy (ALAM) for MISC Bhd’s first LNG carrier project.

He has been involved in various shipping and marine industry-related operations, including supply and management of tugboats to the Port of Singapore, management and operation of salvage ships with Salvindo Pte Ltd, and management and consultancy of marine-related projects.

He also dealt extensively in the import and export of unitised cargo with Shamsul Holdings Sdn Bhd, as well as the construction of a Breakwater for Kerteh Port with Penta-Ocean Construction Co Ltd, among others.

In recognition of his technical, management, leadership and business experience, Noormustafa was appointed as ALAM alumni president and ALAM council member of the advisory committee on student affairs and education matters in 2005.