TAN Sri Kong Cho Ha, a veteran politician and former transport minister, is passionate about the RM200 billion project that involves building a third port at Port Klang. He tells The Edge this is a development meant for future generations.

Like it or not, such a massive investment has raised eyebrows, no thanks to the unpleasant experience with the RM4.6 billion Port Klang Free Zone project more than 10 years ago.

Here are excerpts of the interview.

The Edge: Tan Sri, the World Bank Report, from what I understand, suggests two ­areas for the port development …

Kong Cho Ha: I am not privy to the World Bank report, to tell you the truth, but I think the EPU (Economic Planning Unit) did commission a World Bank study.

How did you come up with the RM200 billion price tag?

The RM200 billion is not only for the construction of the port. Maybe, the port will take up RM20 billion to RM30 billion (of the cost); there could be (other works like) reclamation and (constructing the) breakwater.

Now there is only the SKVE (South Klang Valley Expressway) there; if you want to develop the whole place, I think (you need) a lot more highways and all the (other) infrastructure; (you are not only talking about) roads, drainage, utilities, electricity, water, telecommunications … now do you understand the RM200 billion (tag)?

Still seems high …

No, if Melaka Gateway is RM43 billion, what is this?

The three parties — Sime Darby Bhd, MMC Corp Bhd and the Chinese party, China Merchants Group — are said to be involved in the project …   

Who quoted the three companies? I have never quoted any companies except that the land belongs to Sime Darby. So, Sime Darby has to be involved. I have never mentioned any other companies; if you want, ask Sime Darby, who they are working with.

It can be anybody. Why should it be limited to only one country, China? It could be Japan, the US, India, Dubai.

This place is so big, it has enough room for many players — port developers, port operators, shipping lines, construction companies, property players.

What about the waterway? Is the draft sufficiently deep?

Oh yes. A study has already been conducted and the hydrography chart has also been done. We just have to reclaim the waterfront, then on the portside we will have an 18m draft. Then after that, there is a need for a breakwater.

All these cost a lot. Where will you get the funding from?

It will have to be funded by investors. You should ask Sime Darby. But the government will help with some of the infrastructure, to be fair.

So Sime Darby will be part of the consortium developing Carey Island?

They should be the anchor as they are the landowner.

But Sime Darby might want to sell the land or only take a small stake in the consortium developing Carey Island.

Talk to Sime Darby, I am not privy to that. I cannot talk on behalf of Sime Darby.

Is there any fear of cannibalisation of ­existing ports?

No. Westports will continue to expand. Like I said, it (the project) should complement Westports. If we build a bridge across to Pulau Indah, it would be so convenient; then all the volumes are there for Westports to take.

We heard that Westports had put in a proposal to expand its port by 15 million TEUs at its own expense. Is it true?

They have put all that with the consultants. I have been pushing Westports to expand its terminal.

First, we hear of a port in Melaka. Then there is a port (coming up) in Carey Island now. Are there concerted efforts (being made), or (is there) a master plan or how does it work? Are the ports acting individually?

Ask the Melaka state government. Actually, the Carey Island (project) is not a new idea, it’s in the 2011 master plan. So, you think we shouldn’t do (a port in) Carey Island?

When you talk about Melaka, it’s very different; they came and briefed us, they said they have signed MoUs to build a cruise terminal, which I think is a good thing. Then the rest is all property — a shopping mall, apartments; another island is more (about) real estate. It may also supply some services to the ships that come by.     

After talking to you, everything seems less certain somehow.

This is all at the conceptual level. If you want to conduct a thorough study, it may take one or two years.   

Was there any signing ceremony in China for this port?

I am not aware, you will have to ask Sime Darby.

Will there be a party from China that will participate in this?

Ask Sime Darby, they will know best who they want to rope in.

What is Port Klang Authority’s hope for this whole project?

As far as we are concerned, for the future growth and well-being of Port Klang and the nation, we have to look ahead to what we need to plan. It won’t happen tomorrow.

What about the population requirement for the (port) city? Will you get that from the industries?

To me, the spillover from Greater KL will be enough. Going forward, five years, 10 years, 15 years, 20 years, 25 to 30 years, you won’t have standing space in Klang town if we don’t do something.

When this new port was proposed, it brought back memories of Port Klang Free Zone.

What has this got to do with the Port Klang Free Zone?

It has nothing to do with the Port Klang Free Zone, but it does bring back memories of the unpleasant developments there.

That’s the development of the Port Klang Free Zone. I think it has gone through all that it needs to go through.

So, at this juncture there are people who think there is a need for this port due to economic growth, but are there any assurances that this will be well planned so that …

That’s why I said Sime Darby will have to take up all the things to do it properly … to decide which party they want to work with.

So, you will oversee this project?

Yes, but only the port portion; the industries and city part are something else.

We hear Sime Darby doesn’t know much about this port.

Maybe, they don’t want to talk to you.

Is it accurate to say that this is a federal government-mooted project?

The studies (conducted by GHK Orion and others) show that Carey Island will be an ideal location for the future of the port. So, this is a choice location, and it just so happens that the land belongs to Sime Darby.

How will the East Coast Railway Link (ECRL) connect to this?

I have not seen the alignment of the ECRL, but I was told that it also includes a spur line from Serendah to Port Klang.

So, at the moment there is no clear decision on who runs the port, who owns the port and who will drive the project?

I think Sime Darby will have to work it out, or the government may have other ideas.

Is the Transport Ministry involved?

They (the ministry) are aware because of the studies, even the EPU is aware.

What are the risks for this project?

Everything has risks. It’s how they minimise them, how they manage them.

Do you think there is any risk from the construction of the Kra Canal (in Thailand), which cuts through the Isthmus of Kra?

Unless people are bluffing me … I have spoken to our Chinese ambassador here … I have met him. He says there is no such thing, and I have visited many Chinese ports … no such thing. All the ports in China have never heard about it.

You don’t think it will be difficult to get funding to develop Carey Island?

I have received calls from banks after this news broke, saying they would provide funding. There are also people who called to say they are interested to participate in the project … from the construction industry, real estate developers …

We are so well located, we have all the advantages in terms of logistics, connectivity, geographical location … I read an article questioning why we have to beg for business.

Why do the people in Port Klang need to beg for business?

Because for a long time we never thought of doing anything big. I think maybe people think we can do a lot better than where we are today.

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