Somehow, I read this article in a media site in India; The Hindu Business Line but it’s also reported in many other sites including TheEdgeMarkets. It’s no longer just news after news about investments or partnerships from China. Perhaps this is the start of more substantial investments from India. Adani Group of India, with its port arm, Adani Ports and Special Economic Zone Ltd (APSEZ), India’s biggest private port operating firm has signed a Memorandum of Understanding (MoU) with MMC Port Holdings Sdn Bhd. This MoU is on a feasibility study on the development of a mega container handling port project on Carey Island. Note the word ‘MEGA.’ Carey Island is between 67km to 72km from KL Sentral, depending on the roads you take. Karan Adani, CEO of APSEZ said in a statement in the article, “Malaysia is very strategic to APSEZ global strategy and with Straits of Malacca being a global shipping route. It helps us to drive our global transhipment strategy further. With Vizhinjam port in Kerala, on one side, and Carey Island port, on the other, we will be able to give transhipment solutions to global shipping lines. Malaysia with its supportive, transparent and proactive government policies makes it ideal destination for investment. MMC and Sime Darby are valued partners and with their involvement in these projects strengthens the case even more to make both these projects successful.” I think this is a very positive statement indeed from a CEO to this potential partnership.
Beyond just the mega container handling port, another separate MoU was signed between MMC Port Holdings, Sime Darby Property Berhad, and APSEZ for the development of an integrated maritime city on CareyIsland to support the planned new port. The feasibility study would be for the Carey Island Port Project and the supporting integrated maritime city. Additional information about APSEZ. It is also the developer and operator of India’s biggest private port at Mundra, in Kutch district of Gujarat. It operates container handling facilities at its flagship port of Mundra and also at Hazira, both in Gujarat, and at Kattupalli near Chennai in Tamil Nadu. APSEZ will also soon be starting operations for a new container handling facility it has built at Kamarajar Portat Ennore near Chennai. The firm is also building a mega container transhipment port at Vizhinjam in Kerala. Full article here.
MoU means the actual deal may be some time away. Then again how many transnational deals that we know of that can happen within a few months? I love China which is continuously investing in Malaysia and many other countries. In fact China is the biggest foreign creditor nation to the U.S. However, I love it more when Malaysia does not only have investments from one country. Let’s put this into perspective. GDP wise, India is number 7 in the world today. However, India is projected by the International Monetary Fund to be number 3 in GDP size by 2030. Report here. Malaysia? Well, by 2030, Malaysia will be number 23 in the world for GDP size. Happy following and let’s hope the MoU becomes an actual agreement in the near future. Cheers.
written on 3 April 2017
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