Malaysia’s Federal Government has approved another $82.25 million in funding for Suria Capital Holdings Bhd’s Sapangar Bay container port expansion program, which raises the cost of the entire project to $280 million, according to Deal Street Asia.
This approval for the increase in funding from the federal government came following a recommendation by the Value Management Lab for the Sabah Development Corridor project.
Suria said in its announcement that “the additional funding is to cover the cost of the expansion.”
“Sabah Ports Sdn Bhd, a wholly-owned subsidiary of Suria Capital, the operator of the port will be responsible in procuring the cargo handling equipment and the additional yard to achieve the 1.25 million twenty-foot equivalent units (TEU) capacity,” the company said.
The Sapangar Bay Container Port will be developed into a transhipment hub, and a masterplan to upgrade and expand the infrastructure to allow Main Line Operators will be prepared this year.
The construction work for the first stage of the development is set to begin early next year, with completion expected by 2019.