A ceremony held on January 19 at PTP saw MIEL signing a long-term agreement to sub-lease 7.32 acres of land in PTP's Distripark. The 24 + 30 year sub-lease allows MIEL to construct a 100,000 square foot warehouse complete with all the basic facilities of a modern distribution centre.

The investment, expected to come in at around US$13 million, is part of MIEL's strategic move into the logistics business at the country's most rapidly growing port.

To accelerate its involvement in logistics, MIEL has also signed an MOU with logistics services provider Mayne Nickless Logistics (MNL). Both companies will jointly develop a regional distribution centre by capitalising on PTP's Distripark Free Zone status.

MIEL is also aggressively evaluating potential sites under its landbanks for possible conversion into logistics and distribution parks. MNL, incorporated in Malaysia under the name of On-line Distribution Services Sdn Bhd is part of the Australian-based Mayne Nickless.