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Wednesday, February 1, 2023

Another massive Malacca reclamation project: This time a deep-sea port

 


Although there are several port development plans in the southern waters of the peninsula, one developer is still looking to build another deep-sea port at Malacca Central’s shoreline.

Far East (Melaka) Sdn Bhd submitted an environmental impact assessment (EIA) report on Dec 21, 2022, proposing to build a port and a cruise terminal covering 1,190 acres (equivalent to 899 football fields) at the water near Malacca Central district.

The plan is divided into two parts - the first part is to build a "Deep-sea International Multi-purpose Port" near Alai. The blueprint of the EIA report shows that a liquid and gas terminal, a bulk cargo jetty and a container wharf will be constructed at the deep-sea port.

The second part is to build a 50-acre (equivalent to 37 football fields) international cruise terminal near Pulau Melaka.

These two ports are part of the "Central Eco Business Park" in the blueprint of the Malacca Waterfront Economic Corridor (M-WEZ).

Monetary losses of over RM140m for locals

The EIA team pessimistically pointed out that the Far East plan will damage the environment, habitats of endangered animals and the fishing industry - with the livelihoods and income of fisherfolk being undermined permanently.

The team estimated that to bear the damage of the land reclamation project, the local people will suffer at least RM 144.87 million in monetary losses over the next 50 years.

"Reclamation projects do have negative impacts that cannot be completely mitigated, as well as incur degradation in services from the disturbed natural environment.

"Hence, justifying the need to quantify and, to the extent possible, to value these services in monetary terms. Such valuation is useful in demonstrating the significance of the environmental loss or changes due to any reclamation project,” the EIA report states.

The key environmental issues which were identified by the EIA team are a total loss of 1,190 acres of the muddy seabed and the socio-economic effects on the income of fisherfolk, middle persons and relevant business operators.

Also affected would be the marine ecosystem conservation or preservation efforts that will be implemented, the impact on recreational activities and the expected change in tourist expenditure and environmental inconveniences faced by the locals.

The report also pointed out that some residents are sceptical about the plan to build a 50-acre international cruise terminal as they fear that the plan will fail.

“The current situation also features (nearby) commercial buildings that are not operating properly. It is feared that this situation will also be experienced by the proposed Cruise Terminal Project.”

Ex-MCA councillor a major shareholder

According to the data by the Companies Commission of Malaysia (SSM), the shareholders of Far East Company include Tun Perak Holding Pte Ltd (49 percent shares), Ling Kah Chok (29.32 percent shares) and Toh Kong Ming (21.68 percent shares).

Tun Perak Holding Pte Ltd is registered in Singapore and Ling is the sole shareholder. In other words, Ling controls 78.34 percent of Far East’s equity and is the major shareholder of the construction company.

Ling is 43 years old. He was appointed as MCA’s Pontian city councillor in 2009, but he was removed 20 days later and he started to be more active in the real estate industry.

‘Transforming Malacca into a Port City’

The Far East believes that a new cruise terminal will attract more international and local tourists to Malacca while the deep-sea port will be a catalyst to transform Malacca into a port city and increase the state's revenue.

“Major ports such as Pasir Gudang Port (Johor Bahru), Port of Singapore and Jurong, Port of Rotterdam (Netherlands) and Port of Hamburg (Germany) attest to this which are known to have added … business and employment opportunities.

“In view of the above, Far East, together with the Malacca state government, intend to develop a port city which will be a main driver for Malacca’s economic growth in maritime, aviation, logistics and high-end manufacturing sectors.”

Besides, Far East plans to set up an international maritime and logistics institute, as well as commercial shops at both the port and cruise terminal to increase business opportunities for the locals.

The deep-sea port is expected to take five years to complete.

Concurrent port projects in the region

However, there are already several ports which are planned to take place along the Malacca Strait - including the Kuala Linggi International Port in Malacca (bordering Negeri Sembilan), the Tanjung Bruas terminal in the north of Malacca and the Maharani Energy Gateway in Muar, Johor.

Other existing ports in the Malacca Strait include Port Klang in Selangor, Port of Tanjong Pelepas in Pasir Gudang, Johor, as well as the North Butterworth Container Terminal in Penang.

During the Terms of Reference Adequacy Check (Torac) meeting, the environmental group Sahabat Alam Malaysia (SAM) asked the developer to explain why more ports are needed since there are already many ports being built in the region.

SAM asked the developer to list down the existing ports in Malacca and the neighbouring states, and make a comprehensive assessment of whether the proposed project is justified.

‘Obviously unique than the rest’

In response, Far East explained that their multi-purpose deep sea port is “obviously unique”, unlike other new port plans in the region.

“The proposed deep-sea port will be a private port with a dedicated terminal and facility catering to specific customer requirements and needs, using a built-to-suit concept.

“The deep-sea port is obviously unique, unlike other new port development projects within the Malacca-Johor waters such as the Kuala Linggi International Port and Maharani Energy Gateway.

“In addition, it is also designed so as to not compete with the common users of Malaysia's major transhipment ports such as Port Klang and Port of Tanjung Pelepas,” it added.

However, the EIA report does not specify the uniqueness and the targeted users of the port.

Malaysiakini has reached out to Far East Melaka to inquire about more details on the plan.

The people can read the report and submit feedback on the Department of Environment’s (DOE) website. The deadline for this is Feb 2.

Dr Nik and Associates Sdn Bhd is the consultant company responsible for writing the EIA report. - Mkini

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