This article first appeared in The Edge Malaysia Weekly on September 2, 2024 - September 8, 2024

THE idea of developing a third port for Port Klang was first mooted in 2010 as part of the Port Klang Master Plan (2010-2013). But the government had put on hold its plans for the proposed terminal, following criticism from some quarters, who had at the time pointed out that Westports and Northport were more than sufficient to meet future demands.

Fast forward 14 years and the mood seems to have changed.

The government has announced plans to develop a new RM28 billion mega port in Carey Island, Selangor, that will have an annual container throughput capacity of 30 million 20-foot equivalent units (TEUs) and is scheduled to be completed by 2060.

“Beyond Westports 2, the land around the vicinity is capped. So, now, we have no choice but to put our 14-year-old plan [to build a third port in Carey Island] into effect,” Port Klang Authority (PKA) general manager Captain Subramaniam Karuppiah tells The Edge.

“We can’t wait for the end of a project before we start a new one. That’s because port development is time-consuming. In the 1980s, it took us seven to eight years to plan for Westports,” he says.

“Even for Westports 2, the idea was hatched in 2017. [The development of] Carey Island will be more difficult, given that it has no basic infrastructure. There is currently only one major highway — the South Klang Valley Expressway (SKVE) — that connects to Carey Island.

“Thus, it is going to take mammoth planning, investments, approvals and studies.”

According to a 2018 working paper released by think tank Socio-Economic Research Centre, about 90% of the land in Carey Island is oil palm plantation and 6% of Carey Island is owned by property firm A&M Realty Bhd. The balance of 4% comprises government land, Kampung Melayu Pulau Carey, Kampung Orang Asli, roads and the SKVE.

As SD Guthrie Bhd (KL:SDG) owns about 90% of the land, or about 11,615ha, in Carey Island, it will be the biggest beneficiary if the port project materialises, the paper contends.

In an Aug 11 report, Maybank Investment Bank (Maybank IB) says the development of the proposed port city in Carey Island will boost SD Guthrie’s land value over time.

And, in a separate, March 30, 2023, note from a conversation with the Minister of Transport at Invest Malaysia 2023, Maybank IB noted that the whole development was expected to take 30 years to complete if it is approved. The development will be broken into four phases: Phase 1A (to commence by 2025 at the earliest); Phase 1B (to commence in 2036); Phase 2 (to commence in 2043); and Phase 3 (to commence in 2052).

“In Phase 1, the port is planned to be focusing on conventional cargo instead of container cargo, which should complement Port Klang’s limited conventional cargo capacity. Beyond that, Carey Island’s container capacity will be needed for further growth as Westports’ utilisation rate [as a container port] is expected to reach full capacity by the late 2030s, even after taking into account Westports 2’s capacity. Thus, it is believed that the Carey Island port development will not create any unnecessary competition between the existing neighbouring ports,” the research firm wrote.

Subramaniam says like Northport and Westports, the Carey Island port development will be driven by private initiative.

The feasibility study on the proposed port in Carey Island was completed last year. This year, PKA, along with the Ministry of Transport, will determine a timeline for the project as well as the development model. A steering committee will be set up to look into all issues related to the development and a consultant will also be appointed to prepare the request for proposal documents, says Subramaniam.

He adds that, unlike Northport and Westports, which have a total linear berth length of 16km to 17km, the Carey Island port will adopt the layout of berths in basins to conserve land use and waterways. “With 14km of basin structure, we can create a capacity of about 30 million TEUs.

“We are planning to make it a futuristic port — one that is sustainable for the coming years. That means it must be good and properly planned, and the road infrastructure must be sufficient to cater for future needs. It cannot be just for five years or 10 years. This port is being built for the next 50 years.

“Because of that, the whole area must be properly studied — including environmental and economic issues — because there are many fishing communities living in Carey Island. You also have the [indigenous] Mah Meri tribe. So, we have to ensure that we don’t disrupt their way of life,” he says.

“Between now and 2028, we have to first clear all the issues, such as land and environmental matters, in order for us to get all the approvals. After that, we have to make sure we have the right partner — the right developer, the right port operator. All these will be done within these four years.”

On Perbadanan Kemajuan Negeri Selangor’s (PKNS) involvement in the development of Carey Island into a port city, Subramaniam says port matters are the prerogative of the federal government but land is the prerogative of the state government.

“The Carey Island port development will involve reclamation and land beneath the water belongs to the state government. We have engaged with the Selangor state government and the state is fully supportive of this project. The state government is also looking at the Carey Island port development as a catalyst for the state. This is where PKNS comes into the picture, being a state-owned development entity. It has been entrusted to be a stakeholder in the development and operations of the proposed port.”

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