IKATAN JAYASAMA INKS AGREEMENT WITH SHANDONG PORT TO EXPLORE POTENTIAL OPPORTUNITIES IN PORT INDUSTRY

KUALA LUMPUR, March 3 (Bernama) --  Ikatan Jayasama Sdn Bhd, a local special-purpose vehicle, has entered into an agreement with China’s Shandong Port Overseas Development Group Co Ltd (Shandong Port), among the world’s largest port operators, to explore potential business opportunities in the port industry across Malaysia as well as the East Asian Region.

In a statement today, Ikatan Jayasama said this came on the heels of Shandong Port’s signing of a strategic collaboration agreement and a friendship port agreement with the Palm Oil Industrial Cluster (POIC) Sabah Sdn Bhd to leverage Sabah’s rich resources and expand POIC’s logistics footprint last year.

It said Ikatan Jayasama was instrumental in initiating the discussions between Shandong Port and POIC.

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Executive chairman Syed Sadiq Albar said the agreement marked an exciting milestone for the company that has the tremendous potential to increase Malaysia’s competitiveness as a key logistics player in the region.

“Leveraging on Shandong’s excellent track record and sound operational efficiency could enable port operators to unlock new growth opportunities, attract foreign direct investment and adopt more green practices to drive a more sustainable industry that can have positive impact on the economy and people,” he said.

It said following the agreement, the company would initiate discussions on possible collaborations between Shandong Port and other port operators in the country with the aim to enhance exposure to global logistics connectivity and supply chain networks while advancing trade and investment between ASEAN countries.

Ikatan Jayasama said Shandong Port would also provide access to knowledge and technology advancements such as the use of automation and green energy in ports that can further transform the Malaysian port industry to become more sustainable and efficient.

It said the global logistics giant’s efficient operational optimisation, key automation, sound infrastructure and robust trading practices resulted in the group successfully managing over 37 million twenty-foot equivalent units (TEU), which was the third-highest volume in the world, last year.

“The Shandong Port Group’s multimodal channels span across Asia and Europe and it currently has a total of seven port groups in China under its belt, including Qingdao Port, Rizhao Port, Yantai Port and Wei Hai Port,” it said.

It said in addition to existing capacity, the company has added more than 35 new shipping routes, over 81 new sea-rail lines and over 31 inland ports.

It added that currently, the ports are linked to a combined 313 shipping routes of which, 173 are international, 113 covering Regional Comprehensive Economic Partnership countries and 84 so-called Belt and Road ports and has business in Southeast Asia, South Asia, the Middle East, Europe and West Africa.

-- BERNAMA