Malaysia’s Westports has disclosed that work on its MYR10 billion (US$2.4 billion) terminal expansion will begin in 2021.
This disclosure came with its third quarter results, which showed a 5.5% increase in cumulative net profit to MYR491 million (US$118.03 million), as throughput in the three months to September grew by 6% year-on-year to 2.93 million TEU. Cumulative throughput during the nine month period was 7.73 million TEU, down 4% on-year, due to the disruptions caused by Covid-19.
As a consequence of the capital-intensive investment involved in expanding the Port Klang, Westports is temporarily adopting a dividend ratio of 60% to conserve cash. Westports paid its first interim ordinary dividend amounting to MYR172.2 million in August 2020. The second interim ordinary dividend usually paid in March of the following year.
The terminal expansion is expected to take 25 years and will involve building eight additional container berths on 164.4 hectares of land.
Westports has said that its current nine berths are operating at a utilisation rate of about 77% and this will peak in the next few years, justifying the need for additional facilities.
The terminal operator added that it has achieved a new container volume record by handling 23,183 TEU on one vessel, the CMA CGM Antoine de Saint Exupery, when it called at Westports in the first week of November 2020. Westports deployed nine Ship-To-Shore Cranes in the record-breaking 46-hour operation.
Westports’ group managing director, Ruben Emir Gnanalingam, said, “As we enter into Q4 2020, many regions and cities have reimposed various forms of lockdown again. However, we cautiously expect a less adverse impact from the latest lockdown, compared to Q2, as economies adjust to these movement restrictions.”
Martina Li
Asia Correspondent
