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IJM deputy chief executive officer and deputy managing director Lee Chun Fai said MCKILP would bring opportunities to the ECER.

KUALA LUMPUR: IJM Corp Bhd has partnered with China Harbour Engineering Company Ltd (CHEC) to develop an integrated mixed development and logistic hub to be known as the Malaysia-China Kuantan International Logistics Park (MCKILP).

This marks IJM’s first foray into the industrial and logistics market to meet the growing logistics demands in the east coast region.

In a joint statement yesterday, the companies said CHEC would hold a 51% stake under the new joint venture, while IJM’s indirect subsidiary Asas Panorama Sdn Bhd would own the remaining 49% equity.

It is important to note that Asas Panorama Sdn Bhd is owned 60:40 by IJM Land Bhd and Guangxi Beibu Gulf International Port Group Co Ltd (Guangxi Beibu).

The companies said that both Guangxi Beibu and CHEC would bring their vast networking and access to Chinese investors to the table, which would attract investment into MCKILP, while IJM Land will contribute its property development, operation and maintenance expertise gained through the development of MCKIP 1 and 2.

IJM said MCKILP would be developed on a proposed 640-acre site in MCKIP 3.

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“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 the East Coast Economic Region (ECER) of Malaysia,” it added.

The companies said that the MCKILP would attract downstream industries in logistics, automobile, marine engineering, advanced steel materials, palm oil processing, petrochemical and eCommerce that could become value chain suppliers to surrounding industrial parks, such as MCKIP 1 and 2, Gebeng Industrial Estate and Pekan Automotive Park.

Meanwhile, an agreement for a proposed construction joint venture company was also inked between CHEC and IJM Construction Sdn Bhd yesterday to undertake construction works for the main infrastructure and facilities in MCKILP.

IJM deputy chief executive officer and deputy managing director Lee Chun Fai said MCKILP would bring opportunities to the ECER.

“Its development is extremely timely and will provide critical infrastructure that will enhance the region’s logistics and supply-chain capabilities.

“Together with MCKIP 1 and 2, we envision MCKILP’s complement to the industrial ecosystem, catalysing more investments to the region in the future,” added Lee, who is also the chairman of MCKIP.

Moving forward, Lee believes MCKIP, MCKILP and East Coast Rail Link are expected to contribute positively to IJM-owned Kuantan Port’s bulk cargo and container throughput.