He said KLIP would rather complement other existing ports, and was chosen based on suitability and the needs of investors due to its strategic location between Penang and Singapore.
"We are aware of the Thai government's plan to build a port and a land bridge that will shorten ships' journey without going through the Straits of Melaka. However, studies show that it facilitates the transfer of goods from the west to the east. Therefore, this land bridge is not a threat but complements the role of existing ports.
"We must also understand that KLIP is a service port, not a trading port, and its location on the main shipping route between Asia, Europe and the Middle East will propel this private port into a crucial hub for international trade," he said.
Ab Rauf was speaking to newsmen after officiating the groundbreaking ceremony of KLIP in Kuala Linggi here today, which was also attended by its executive chairman Tan Sri Dr Noormustafa Kamal Yahya.
On the RM115 billion project, scheduled to be completed in phases within 42 months, Abd Rauf said it is designed to transform Kuala Linggi into a global green industrial hub for energy, sources, ports and maritime services.
"As it is a service port, its development includes the construction of storage tanks, shipping berths, heavy industry fabrication berths, a robust cargo handling area, wharves and warehouse facilities on a 620-acre island with reclamation costs of RM1.39 billion," he added.
Ab Rauf said with a strategic route where almost 120,000 ships pass through the Straits of Melaka each year, he is positive that KLIP will thrive and, most importantly, the project will create up to 10,000 skilled job opportunities from the construction phase to its implementation.
Meanwhile, Noormustafa said in developing KLIP, strong commitment would continue to be given to environmental conservation and sustainability initiatives.
"The groundbreaking ceremony is a historic event for KLIP and a significant step forward in our mission to become a world-class maritime hub.
"It is not only about building a port but is also creating a symbol of progress, cooperation and innovation in the maritime ecosystem that stimulates economic development and creates opportunities for future generations.
"In addition, the facility will be designed to accommodate storage tanks for bulk liquid cargo handling, Liquid Petroleum Gas (LPG) and Liquid Natural Gas (LNG), as well as a special area for ship maintenance, repair and operations (MRO)," he said.
--BERNAMA
