After billion-ringgit controversy, PKFZ now ‘very vibrant’, PKA chief claims
(Malay Mail Online) – The Port Klang Free Zone (PKFZ), once at the centre of a multi-billion ringgit scandal allegedly involving a succession of transport ministers, is now being touted as a “progressive business hub” that has drawn large-scale foreign and domestic investments, according to Port Klang Authority (PKA) Chairman Tan Sri Kong Cho Ha (pic).
Kong, a former transport minister himself, claimed that that free trade zone has drawn “big players” such as Norwegian oil and gas company, Aker Solutions, the London Metal Exchange and soon the International Commodity Exchange.
“PKFZ has the confidence of investors, with more than 80% of its land for lease already taken up,” he was quoted as saying by English daily The Star.
“PKFZ is very vibrant now,” Kong said, adding that other developments already operating include the four-star Harbour View Worldwide Hotel, four office blocks, an exhibition centre and warehouses.
PKFZ was initially mooted in 1997 by the-then Transport Minister Tun Dr Ling Liong Sik, who envisioned a regional integrated cargo distribution and industrial park within the free trade zone.
It was initially budgeted at RM1.1 billion but this later grew to RM4.6 billion in 2007.
A year later, an audit by accounting firm PricewaterhouseCoopers ― which was commissioned by Datuk Seri Ong Tee Keat, who was transport minister at that time ― found that the total cost including interest payments was projected to hit RM12.5 billion.
The issue eventually lead to criminal charges against Dr Ling, though he was eventually acquitted in October 2013 of cheating the Cabinet into approving a land purchase for the PKFZ project.
Former PKA general manager OC Phang, however, continues to face trial on charges of criminal breach of trust and cheating.
Despite the controversy, Kong said the PKFZ has since drawn some RM2 billion in investments to date and expects to increase the figure to RM3 billion over the next three years.
The current investment value generates between RM50 million and RM60 million annually, and is estimated to grow to RM100 million over the next three to five years, he added.
Once fully operational, PKFZ will contribute an estimated one million twenty-foot equivalent units (Teus) of container volume to Port Klang, which already handles 11 million Teus and ranks as the 12th largest container port in the world, Kong said.
To take advantage of the growth opportunities, Kong said PKFZ will be gunning for Chinese investors under the 21st Century Maritime Silk Road initiative, as part of current Transport Minister Datuk Seri Liow Tiong Lai’s Silk Road initiative.
The PKA will also consider land expansion within a two kilometre radius of Port Klang to support demand for PKFZ.
