BUTTERWORTH, Penang: MMC Corp Bhd, through unit Penang Port Sdn Bhd, is working on a more than RM2.0 billion expansion to boost North Butterworth Container Terminal quayside capacity to 4.1 million twenty-foot equivalent units by 2050.
Penang Port chief executive officer Datuk Sasedharan Vasudevan said the expansion, under a proposed 30-year masterplan, is estimated to cost RM2.2 billion.
The planned development, which includes enlarging the yard capacity to 2.9 million TEUs, will be carried out in five phases, he added.
Each phase will involve 14 hectares (ha) of reclaimed land for container yards, an additional 70ha to the current 72.2ha while the berth will be extended to 2.9 kilometres (km) from 1.5km currently.
According to Sasedharan, the development is now in the first phase where the quayside capacity is being increased to 2.3 million from 2.1 million TEUs.
Although the plan has yet to receive the state government's approval, he said the expansion is necessary to cater to TEUs growth given Penang's position in the electrical and electronics (E&E) and foreign direct investments received by the northern region.
"Penang, in the last three years, has been the biggest exporter and is also very strong in E&E sector. The solar manufacturing is one of the biggest as we have three major solar players in the northern region," he said at a media briefing at Penang Port's headquarter here on Monday.
Sasedharan said the future expansion is also to fulfill a requirement stipulated under the concession it received from the government.
"Our concession is up to 2055. So as part of the concession, we have to expand the capacity," he explained.
He added that the planned expansion has also accounted for the container growth and upcoming developments, including new industrial zones.
"Being the nearest port, we have to expand to meet these demands. That's why we have various phases based on the demand that will come," he said.