LANGKAWI, May 24 – Kuala Linggi International Port (KLIP) Group of Companies is set to embark on an ambitious expansion plan with the signing of a Letter of Award (LOA) for a reclamation project worth RM800 million. The project, known as the LINGGI BASE, aims to meet the increasing demand in maritime traffic and boost economic growth in the region. The LOA was signed between KLIP’s subsidiary, Linggi Base Sdn Bhd (LBSB), and CCCC Dredging Southeast Asia (CDSEA), marking a significant milestone for the port’s expansion. Reclamation works are scheduled to commence in the 3rd Quarter of 2023.
The LINGGI BASE project will encompass the reclamation of 620 acres of land within the port’s limits. The development will include a 170-acre tank farm with a capacity of 1.5 million cubic meters, a 131-acre shipyard for dry docking, a 60-acre fabrication yard, a cargo wharf, and a distribution park. This expansion is expected to transform KLIP into a major hub for maritime activities. The LOA exchange took place at the Mahsuri International Exhibition Centre (MIEC) during the 16th Langkawi International Maritime and Aerospace Exhibition (LIMA 2023), where Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, was present to witness the ceremony.
The event also welcomed other distinguished guests, including Transport Minister Anthony Loke Siew Fook, China’s Ambassador to Malaysia Mr. Ouyang Yujing, and Chief Minister of Malacca Datuk Seri Ab Rauf Yusoh. Datuk Hishammudin Hasan, the Group Chief Executive Officer of KLIP, expressed his enthusiasm for the project, highlighting the economic benefits it will bring. “Upon completion, our expansion will further create 6,000 to 10,000 new employment opportunities of various talents and set skills. LINGGI BASE will create an economic impact zone of 100km radius,” he stated. The project is estimated to have a Gross Development Value (GDV) of RM100 billion, further solidifying its significance for the region.
The LINGGI BASE site is strategically located within KLIP’s water column, at the Sungai Linggi river mouth, with close proximity to the Kuala Linggi mainland. The port’s deep water depth of 25m to 55m within its limits positions KLIP as one of the deepest ports in the country. Once the expansion is completed, LINGGI BASE will be connected to the mainland through a 700m long bridge, enabling the handling of ships with a draft of up to 22m at the outer berth. Addressing the growing maritime traffic in the Straits of Malacca, Hishammudin emphasized the importance of KLIP’s expansion.
He stated, “Traffic plying through the Straits of Malacca is projected to double to 200,000 vessels annually by 2030. KLIP’s expansion will play a crucial role in alleviating congestion and meeting the International Maritime Organization’s (IMO) concerns regarding the impact on the global maritime industry.” KLIP’s expansion project is expected to not only enhance Malaysia’s position in the maritime sector but also contribute to the nation’s foreign exchange earnings. With a focus on creating sustainable economic growth and employment opportunities, the LINGGI BASE development aims to secure KLIP’s role as a vital player in the international maritime trade network.