Port of Tanjung Pelepas Sdn Bhd (PTP) will invest an estimated RM1.3 billion in phase two of its development, which includes new berths and equipment.

PTP chief executive officer Datuk Mohd Sidik Shaik Osman said on Aug 17 that of the RM1.3 billion, the port operator had secured RM741 million from Bank Pembangunan dan Infrastruktur Malaysia Bhd (BPIMB).

“The tenure of the RM741 million loan is for 15 years. We are in discussions with other parties for the remaining RM559 million,” he said.

Mohd Sidik said the huge investment was to cater for anticipated growth in the port, which is the 16th largest in the world.

The expansion under phase two would enable the port to increase the throughput, which stood at 4.02 million twenty-foot equivalent units (TEUs) in 2004, he said.

“In 2005, PTP anticipates growth in volume of 5% to 10%. For 2006, we expect double-digit growth,” he said after a signing ceremony between PTP and the bank in Kuala Lumpur.

PTP has secured loans totalling RM1.89 billion from BPIMB, including the RM741 million.

BPIMB president and managing director Datuk Abdul Rahim Mohd Zin said the previous RM1.15 billion was to part-finance six container berths with port facilities under phase one of PTP.

Mohd Sidik said work on phase two was initially targeted to start in 2005 but PTP had decided to commence work in November 2002 due to the rapid growth of the port’s operations.

“To date, berths seven and eight with a few rows of container yard have been completed and are operational," he said. Work on berths nine and 10 have started and he expects these berths to be completed by mid-2006.

On PTP’s free trade zone, Mohd Sidik said PTP expected investments of RM500 million to come into the zone, mainly in marine property-related development which complements PTP’s master plan.

Last year, PTP recorded a net profit of RM75 million but he declined to provide details on the expected financial performance for 2005