PETALING JAYA (March 7): The Ministry of Transport has confirmed that Integrated Marine Works Sdn Bhd (IMW), a subsidiary of Inai Kiara Sdn Bhd, had been appointed as the contractor to undertake dredging and reclamation works at the country’s ports from July 7, 2021.
In a written answer to questions posed by the Member of Parliament for Seremban, Anthony Loke, the ministry said the appointment was made because IMW is a subsidiary of Inai Kiara, which is a 100% local company. In addition, the ministry also took into account its strengths and achievements.
“Throughout the previous concession period, IMW had managed to complete 247 dredging works with a total contract value of almost RM2.28 billion,” the ministry stated in its written response to Loke’s questions last Thursday (March 3).
This confirms The Edge’s story of Jan 17 titled “Federal port capital dredging concession raises spectre of higher costs for operators”.
IMW was the concession holder for maintenance dredging for all federal ports between Dec 21, 2004 and Dec 21, 2019. During the period, IMW changed from being a joint venture between Inai Kiara and Seaport Terminal (Johore) Sdn Bhd to a wholly-owned subsidiary of the former.
According to the written reply, the ministry said IMW has sufficient assets and technical know-how in dredging works compared with other local companies that are still using foreign machinery to undertake the same job.
The company owns dredging vessels that were designed according to the quality standard of Bureau Veritas and Ship Classification Malaysia. One of the dredgers – Inai Kenanga – is the third-largest dredging vessel in the world, and the largest in Asia. It was built locally by IMW.
Loke had asked the government about the terms of the contract given to IMW, to which the ministry responded that it is still finalising and upgrading the main concession terms to safeguard the Putrajaya’s interest, as well as the operations of all federal ports.
Speaking to The Edge on this matter, Loke criticised the government for not announcing the appointment, as it involved a matter of national interest.
“This deal will have a big impact on our country, as it involves capital dredging at all federal ports, and this involves a lot of money. The decision was already approved by the cabinet last July — why wasn’t it announced to the public then?
“This is something very unusual and I think it's bad governance on the government’s part and lack of transparency,” said Loke when contacted by The Edge on Monday (March 7).
Federal ports include Port Klang in Selangor, Port of Tanjung Pelepas and Johor Port in Johor, Penang Port, Teluk Ewa Port in Langkawi, Tanjung Bruas Port in Melaka, Kemaman Port in Terengganu, Kuantan Port in Pahang, Bintulu Port in Sarawak and Labuan Port.
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