MMC, Felda Holdings unit to explore investment in Pakistan port

KUALA LUMPUR (Jan 6): MMC Corp Bhd seeks to team up with Felda Holdings Bhd to explore the potential equity participation of up to 25% stake in Fauji Akbar Portia Marine Terminals Ltd (FAP), an entity which had been granted a concession by the Port Qasim Authority to operate a dry bulk terminal in Port Qasim, Pakistan.

In a bourse filing today, MMC said its wholly-owned subsidiary Johor Port Bhd had on Jan 3 entered into a memorandum of understanding (MoU) with Felda Holdings' 65%-owned Pakistan-based unit FWQ Enterprises (Pte) Ltd for the purpose. The balance of 35% equity interest in FWQ are held by Westbury Group, a company based in Pakistan.

The MoU is remain valid for two years.

On July 5, 2019, FAP had invited selected potential investors to invest up to 25% equity interest in the company for the future expansion and upgradation works identified by FAP for its concession.

"Johor Port and FWQ intend to form an unincorporated joint venture (consortium) for the sole purpose of, preparation and submission of an expression of interest (EOI) to FAP," said MMC.

The project will consist of five potential expansion/upgradation works identified by FAP for its concession which are expected to increase throughputs, efficiency, capacity and revenue of FAP. They involve land reclamation for additional storage, installation of new and efficient unloaders, warehouse extension along with additional bagging lines, installation of new silos and jetty extension.

Under the MoU, both parties have expressed their intention to work together to make available their technical and commercial expertise and to collaborate and utilise their respective resources, capabilities and prudent experiences in relation to the preparation and the submission of the EOI.

"MMC will make further announcements if there are material developments on the matter," it added.

FAP is a joint venture company between Fauji Foundation, Akbar Group and National Bank of Pakistan. FAP is the concession holder of Pakistan’s fully automated dry cargo grains and fertiliser terminal with an installed handling capacity of 4 million tonnes per year.

FAP also has a15 acres back-up area which can be further developed to accommodate an additional 500,000 tonnes of storage.

MMC shares closed two sen or 2.05% higher at RM1 today, valuing it at RM3.03 billion.