Westports Holdings Explores External Investors for US$8.3bn Expansion Amidst Southeast Asia’s Port Race

• 18 February 2024
• Construction Focus
• 1432 Views

Westports Holdings Bhd., Malaysia’s largest port operator, is contemplating the inclusion of external strategic investors to facilitate the funding of its ambitious 39.6 billion ringgit (US$8.3 billion) expansion. The plan involves nearly doubling the port’s capacity over the coming decades, positioning it as a key player in the competitive Southeast Asian port landscape, according to Bloomberg on 13 February 2024.

Executive Chairman Ruben Emir Gnanalingam expressed openness to external investments, stating, “We would be open to it if it’s someone who can come and add value to us.” The expansion initiative, scheduled to unfold until 2082, anticipates increasing capacity from the current 14 million twenty-foot equivalent units to 27 million.

In an interview at the Klang facility, Ruben mentioned potential financing avenues, including a dividend reinvestment plan and borrowing. The first of eight new container terminals is slated to become operational in 2027.

This expansion mirrors regional developments, with Singapore constructing the world’s largest automated terminal at Tuas Port, and Thailand proposing the ‘Landbridge’ project to address the projected traffic overflow in the Malacca Strait. (Read More)

While considering opportunities to acquire other ports in Southeast Asia, Ruben emphasized a disciplined approach to investments, focusing on generating decent returns rather than indiscriminate expansion. The company’s sustainability efforts, including a reassessment of electric vehicle use due to the carbon footprint, underscore its commitment to responsible growth in the maritime industry.

• Projects Development
• Road and Infrastructure