PETALING JAYA: IJM Corp Bhd recently entered into a partnership with China Harbour Engineering Company Ltd (CHEC) for the development of Malaysia-China Kuantan International Logistics Park (MCKILP), an integrated mixed development and logistics hub in Kuantan, Pahang.
This marks IJM’s first foray into the industrial and logistics market to meet the growing logistics demands in the east coast region.
The agreement for a joint-venture company (JVC) was signed between CHEC and Asas Panorama Sdn Bhd, IJM Corp’s indirect subsidiary that is owned 60:40 by IJM Land Bhd and Guangxi Beibu Gulf International Port Group Co Ltd. CHEC will hold an equity interest of 51% in the JVC while Asas Panorama will hold the remaining 49%.
MCKILP will be developed on a proposed 640-acre site in Malaysia-China Kuantan Industrial Park 3 (MCKIP 3). The mixed property development and logistics hub will comprise light and medium industrial, logistics and warehousing, residential and commercial components. This ambitious new development will turn MCKIP 3 into a premier industrial and logistics hub in Malaysia’s East Coast Economic Region.
MCKILP is set to attract downstream industries in logistics, automobile, marine engineering, advanced steel materials, palm oil processing, petrochemical and e-commerce that could become value chain suppliers to surrounding industrial parks such as MCKIP 1 and 2, Gebeng Industrial Estate and Pekan Automotive Park.
On the same day, a collaboration agreement for a proposed construction JV company was signed between CHEC and IJM Construction Sdn Bhd. The JV company will undertake construction works for the main infrastructure and facilities in MCKILP.
“Together with MCKIP 1 and 2, we envision MCKILP’s complement to the industrial ecosystem, catalysing more investments to the region in the future,” said IJM Corp deputy CEO & deputy managing director and MCKIP chairman Lee Chun Fai, who signed the agreement on behalf of Asas Panorama.
CHEC’s track record and core capability in the development of industrial parks in Bangladesh, Port City in Sri Lanka and ports in Africa and the Middle East will give future investors and tenants considerable assurance about the quality of infrastructure that will be available; as well as seeing to the implementation of MCKILP. Both Guangxi Beibu and CHEC will bring their vast networking and access to Chinese investors, which will be key in attracting investments into MCKILP, while IJM Land will contribute its property development, operation and maintenance expertise gained through the development of MCKIP 1 and 2.
CHEC is a subsidiary of China Communications Construction Company, the main contractor of the East Coast Rail Link.
