People prefer Port Klang, which for some is pretty far away over roads, because it is more efficient. A new Chinese built port is bound to be very efficient and be able to draw industrial investment to it. In that respect it might be a good idea. It would also pull Malaysia as well as Singapore, from self defence, nearer to China.Singapore better watch out!. If they are not cautious with their support of pivot, they might be at the receiving end of China own pivot to Malaysia
Plan is now afoot to developed Malacca port and if China mad enough they might built the long talked Kra canal in Thailand kra isthmus
Malacca harbour plan raises questions about China's strategic aims
An artist's impression of the Melaka Gateway joint venture, which is part of a wider port alliance between Kuala Lumpur and Beijing to increase bilateral trade and boost shipping and logistics along China's Maritime Silk Road.PHOTO: MELAKA GATEWAY
Published
Nov 14, 2016, 5:00 am SGT
Malaysia Correspondent In Kuala Lumpur
A RM43 billion (S$14 billion) harbour being developed in Malacca aims to overtake Singapore as the largest port in the region, but questions are being raised about the need for the added capacity and whether China's eager participation has to do with good business or its crucial strategic interests in the Malacca Strait.
For China, not only does most of its trade pass through the Malacca Strait, but so does up to 80 per cent of its energy needs. This prompted then President Hu Jintao to make the "Malacca Dilemma" a key strategic issue as far back as 2003.
"There is the strategic element of the Malacca Strait. It always starts with an economic presence, which can develop into a naval one, because China will be obliged to ensure the safe passage of its commercial ships," said Dr Johan Saravanamuttu of the S. Rajaratnam School of International Studies, who studies the Malaysia-China relationship.
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The Melaka Gateway joint venture is part of a wider port alliance between Kuala Lumpur and Beijing to increase bilateral trade and boost shipping and logistics along China's much-vaunted Maritime Silk Road.
Chinese firm Guangxi Beibu International Port Group already owns 40 per cent of Kuantan port, which faces the disputed waters of the South China Sea, and 49 per cent of the Kuantan Industrial Park in Pahang, the home state of Malaysian Prime Minister Najib Razak.
The Malaysian authorities are talking up the game-changing Melaka Gateway deal between little-known KAJ Developments and energy giant PowerChina International, which will form a joint venture and spend RM30 billion to reclaim three islands off Malacca's coast. The entire Gateway development will be completed in 2025 but the deep-sea port is expected to be ready by 2019. The Malaysian government hopes to attract the bulk of 100,000 vessels, most of them Chinese, that ply the Malacca Strait annually.
Some industry players have expressed concern about the cannibalising of existing ports along the strait, especially in the light of Singapore's own port expansion.
Though the Malaysian government has said a new port is needed because Klang, the country's most important port, will be full by 2020, studies appear to show otherwise.
A World Bank study commissioned by the government last year showed a new port on Malaysia's west coast is not necessary, as existing facilities have yet to reach capacity, according to sources. Both operators at Port Klang - Westports and MMC - have also made expansion proposals that would double the port's capacity, the sources added.
"Because there seems to be no logic to the Melaka deal, many are questioning if this has more to do with military rather than commercial interests," a logistics player told The Straits Times.
Sources also said the reclaimed islands would be given freehold status and the port granted a 99-year concession - both rare and generous terms. Melaka Gateway did not respond to a request for comment.
China's military presence around Malaysian waters has increased significantly since last year. In September last year, all three branches of the Chinese armed forces took part in a six-day joint exercise on "disaster relief" in the Malacca Strait.
China has also gained access to Kota Kinabalu, a crucial dock in Sabah close to the disputed Spratly Islands, where Beijing's construction activities have been a source of diplomatic strife in the region.
A former port authority chief noted that China has made moves to reduce its reliance on the Malacca Strait, such as via port-and-rail or pipeline projects in Pakistan, Myanmar and Eastern Europe, which means "we cannot take Beijing's commitment here for granted".
"If China pulls out her support, the port becomes useless because it has no hinterland, unlike Klang and Penang which serve a big local market. In fact, many businesses prefer to send their goods to Klang by road instead of the existing Malacca or Penang ports because it is more efficient."
Critics have questioned Malay- sia's over-reliance on China, in the light of the huge deals struck during Datuk Seri Najib's recent visit to Beijing, as well as a whopping RM55 billion loan to build a railway that will eventually link Port Klang on the west and Kuantan port in Pahang and also Terengganu and Kelantan.
"There is the question of over-dependence, and the diplomatic leverage involved if Beijing were to move in more aggressively. So far, Najib is still hedging, but when it comes to investments, you can't expect as much from America as you can from China. If you want to go up against Singapore, then this port makes sense, especially when it is in the form of foreign investment, given Malaysia's fiscal constraints," said Dr Saravanamuttu.
Transport Minister Liow Tiong Lai batted away these concerns on his return from Beijing, telling reporters that "with the economy growing, we need more ports". He said: "The port alliance... has seen results, bringing more competitiveness to our ports and logistic sectors."
China's SCS Strategy Thread
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Hendrik_2000
Lieutenant General
Actually Port Klang is closer to KL than Melacca.But Melacca has special place in China and the Chinese heart.Last year Li Keqiang visit Malaysia for Asean Meeting. He is very busy man but he insists on visiting Melacca. He said he want to see for himself how the seed that Admiral Cheng Ho sow back in 15th hundred grows into a strong tree.
He want to see the Cheng Ho museum built on premise of old warehouse from Cheng Ho time and he visit Peranakan house.
It will be completely different city than the one I visited long time ago. For me Melacca always will be my spiritual Heimat so many historical site. Maybe I should retire there
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Temasik is the original name for the island of Singapore before the British came, how ironic, I guess what goes around comes around if Malacca does regain her glory days with the help of the Chinese again.
The beginning of the end of Singapore's lucrative oil tanker service trade, especially from Chinese flagged tankers. High cost, limited space and natural resources would find her more and more difficult to compete. If this is a Malaysian only set up there is nothing to be of concern to Singapore since the Malays have a natural tendency towards bad management because of wanton corruption which has helped Singapore to fluorish, but with the Chinese partnership it is a different cup of tea
Hendrik_2000
Lieutenant General
That is correct Port facility success depend not only on location but also on technology and management.See the video on Singapore port. China has built tens if not hundred of port facility since opening up .Plus the recent turnaround at Piraeus port in Greece attest to Chinese acumen when it come to running a port.
But Malacca is strategically important as it can keep an eye on the Indian up in Nicobar and Andaman and to the south Singapore. It is the second busiest shipping route in the world And gateway from Europe to Asia. See this video. China definitely need a foothold in Melacca
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SamuraiBlue
Captain
With the freight railroad being planned to link Myanmar and Vietnam, I doubt there will be much need for another port near the Strait of Malacca.
Rail roads can't handle the same load as mega ships
SamuraiBlue
Captain
Don't need to not in a single haul anyways.
The Strait of Malacca is over crowded that is the reason why the ports in Singapore is crowded in the first place. They wait for their turn to go through the strait.
With a freight line going from east to west and visa versa through the Indochina peninsula, people will have far more options they can consider.
You have to take loading and unloading time into account. Time is money
If that is the problem then the Kra canal is the solution.