KUALA LUMPUR, November 2 — Sime Darby Bhd plans to invest RM15 million for the development of a 265-hectare logistics park, located next to its port operations in Weifang, in Shandong province, China.
Its Logistics Division Managing Director, Timothy Lee Chi Tim, said the allocation in the financial year ending June 30, 2017 (FY17) would include laying down some of the park utilities, initial study and consultancy.
“It is still in the initial stage and we’re also working with different parties to set up a halal-specified area within the park.
“This year, we’ll be contacting halal manufacturers in Malaysia and China, and link them up to involve joint-ventures with us,” he told reporters on the sidelines of the company’s annual general meeting here today.
Lee said interested parties were welcomed to build their warehouses and logistics facilities in Weifang port.
Recently, Sime Darby secured the development right from the Chinese government to develop the logistics park, as part Weifang port’s expansion plan, which was scheduled to be completed by end of FY17, he said.
To-date, the port has achieved 70% utilisation rate, he said, adding that, port operators normally expanded their ports when utilisation rate reached between 75% and 80%.
In 2012, the conglomerate has invested RM1.4 billion to expand its port operations in Weifang and the construction work will be completed in FY17.
“The expansion will increase the capacity to 70 million deadweight tonnages (dwt) of cargo from 40 million dwt,” Lee said.
He said three berths were already on trial run while the other three will start trial runs by year-end.
“Two liquid terminals will start the trial runs around April to May 2017,” he said.
For FY16, Sime Darby’s logistics division remained resilient despite the challenging environment.
Its revenue was unchanged at RM293.5 million on a year-on-year basis.