Penang Port yet to be officially notified of takeover
Published: 2012/03/30
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It is learnt that Penang Port Sdn Bhd had been shown a letter from the Ministry of Finance by Syed Mokhtar’s key aide Datuk Mohd Sidik Shaik Osman when he visited Penang recently.
PENANG Port Sdn Bhd (PPSB) has not been officially notified of a takeover by Tan Sri Syed Mokhtar Al-Bukhary, although the northern port operator has been directed by the government to cooperate with a firm linked to the tycoon.
It is learnt that PPSB had been shown a letter from the Ministry of Finance by Syed Mokhtar’s key aide Datuk Mohd Sidik Shaik Osman when he visited Penang recently.
“While the letter did not officially state that any sale had
gone through, PPSB was asked to extend its cooperation to
Syed Mokhtar’s vehicle Seaport Terminal (Johore) Sdn Bhd,
which is the holding company of Johor Port Bhd,” a source told
Business Times.
“We had also asked if any agreement for the official takeover
of PPSB has been inked so far and were told that it has not,” the source added.
Johor Port is wholly-owned by MMC Corp Bhd, which is Syed Mokhtar’s flagship company dealing in ports and power plants.
PPSB, meanwhile, is a wholly-owned subsidiary of the Minister of Finance Inc (MOF).
A news portal yesterday reported that Syed Mokhtar’s officials are already running the Penang port.
It added that Mohd Sidik has been at PPSB talking to its staff and convincing them that the deal will not affect them.
The portal cited its earlier report in December 2010, which quoted sources that the Cabinet had approved the MOF’s sale of
PPSB to Port of Tanjung Pelepas (PTP), a unit of Syed Mokhtar’s logistics operations.
This was despite competitive bids from other businessmen and also the Penang state government, which owns the port land.
Port users, when contacted, have expressed dismay over the fate of the Penang port if the acquisition goes through.
“The government must reconsider this sale and engage with port users before deciding on a move as drastic as this,” Penang Freight Forwarders Association (PFFA) president Krishnan Chelliah
said.
He said the takeover by Syed Mokhtar would downgrade the Penang port to one of a feeder port and further dilute its effectiveness.
“Syed Mokhtar is already running PTP and Pasir Gudang, so how sure are we that Penang Port will not be downgraded?” he
added.
The PFFA’s 120 members are made up of foreign and local exporters of items, which include electrical items and manufactured products ranging from rubber gloves to steel.
It is learnt that PPSB had been shown a letter from the Ministry of Finance by Syed Mokhtar’s key aide Datuk Mohd Sidik Shaik Osman when he visited Penang recently.
“While the letter did not officially state that any sale had
gone through, PPSB was asked to extend its cooperation to
Syed Mokhtar’s vehicle Seaport Terminal (Johore) Sdn Bhd,
which is the holding company of Johor Port Bhd,” a source told
“We had also asked if any agreement for the official takeover
of PPSB has been inked so far and were told that it has not,” the source added.
Johor Port is wholly-owned by MMC Corp Bhd, which is Syed Mokhtar’s flagship company dealing in ports and power plants.
PPSB, meanwhile, is a wholly-owned subsidiary of the Minister of Finance Inc (MOF).
A news portal yesterday reported that Syed Mokhtar’s officials are already running the Penang port.
It added that Mohd Sidik has been at PPSB talking to its staff and convincing them that the deal will not affect them.
The portal cited its earlier report in December 2010, which quoted sources that the Cabinet had approved the MOF’s sale of
PPSB to Port of Tanjung Pelepas (PTP), a unit of Syed Mokhtar’s logistics operations.
This was despite competitive bids from other businessmen and also the Penang state government, which owns the port land.
Port users, when contacted, have expressed dismay over the fate of the Penang port if the acquisition goes through.
“The government must reconsider this sale and engage with port users before deciding on a move as drastic as this,” Penang Freight Forwarders Association (PFFA) president Krishnan Chelliah
said.
He said the takeover by Syed Mokhtar would downgrade the Penang port to one of a feeder port and further dilute its effectiveness.
“Syed Mokhtar is already running PTP and Pasir Gudang, so how sure are we that Penang Port will not be downgraded?” he
added.
The PFFA’s 120 members are made up of foreign and local exporters of items, which include electrical items and manufactured products ranging from rubber gloves to steel.
Read more: Penang Port yet to be officially notified of takeover http://www.btimes.com.my/Current_News/BTIMES/articles/20120329232618/Article/index_html#ixzz1qYUwhykK
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