BANDUNG (July 10) — The Selangor government is aiming to begin construction of the proposed third port terminal on Carey Island as early as September 2026, pending approval of a port licence from the Ministry of Transport (MOT).
According to Selangor Menteri Besar Datuk Seri Amirudin Shari, land acquisition and related matters have largely been resolved, leaving regulatory approval as the final requirement before the project can proceed.
Awaiting Port Licence Approval
Amirudin said the state government is currently waiting for the Ministry of Transport to issue the necessary port licence.
Once approval is granted, construction can commence immediately, with planning expected to be finalised by September.
The port licence is a regulatory authorisation required for maritime, shipping and commercial activities within Malaysia's port areas.
Several Potential Operators Under Review
The Selangor government is also evaluating potential operators for the new terminal.
While no appointment has been made, Amirudin confirmed that several parties have expressed interest over the past two years, including MMC Corporation Bhd.
Through MMC Port Holdings Sdn Bhd, the group currently owns and operates several major Malaysian ports, including:
Northport
Port of Tanjung Pelepas
Johor Port
Tanjung Bruas Port
The identity of the successful operator will only be announced after all regulatory approvals have been completed.
State Government to Hold Equity Stake
Rather than acting solely as the project facilitator, the Selangor government intends to participate directly in the port's operations.
A state-owned subsidiary will hold an equity stake in the terminal, allowing Selangor to benefit from:
Operating profits
Dividend income
Tax revenue generated by the port
The strategy is intended to create a long-term and sustainable revenue stream for the state beyond conventional tax collection.
Long-Term Infrastructure Investment
Although construction may begin this year, Amirudin noted that the Carey Island port is expected to require at least 10 years before becoming fully operational.
The project forms part of Malaysia's long-term strategy to expand capacity at Port Klang and strengthen its competitiveness as a regional maritime hub.
Supporting Port Klang's Future Growth
The Carey Island terminal is expected to complement the ongoing Westports Phase 2 expansion.
Currently, Port Klang handles approximately 15.1 million twenty-foot equivalent units (TEUs) annually.
Upon completion of Westports Phase 2, total handling capacity is expected to increase to approximately 28–29 million TEUs.
However, regional competition remains intense.
Singapore's Tuas Megaport is designed to handle up to 65 million TEUs annually once fully completed, highlighting the importance of continued infrastructure investment to maintain Malaysia's competitiveness in global shipping and logistics.
Safeguarding the Strait of Malacca
During the launch of SIBS@ASEAN in Bandung, Amirudin also emphasised the importance of regional cooperation in protecting the Strait of Malacca.
He called on countries bordering the strategic waterway to work together to safeguard its sovereignty and ensure continued peace and stability.
Amirudin noted that while around 20% of global energy shipments pass through the Strait of Hormuz, nearly 30% transit through the Strait of Malacca, underlining its significance to global trade and energy security.
What I Learn
The Carey Island port project represents one of Malaysia's most significant long-term logistics infrastructure developments. Rather than simply expanding port capacity, the project aims to strengthen Port Klang's position against increasing regional competition, particularly from Singapore's rapidly expanding Tuas Megaport.
Selangor's decision to hold an equity stake through a state-owned subsidiary also reflects a broader trend of governments seeking direct participation in strategic infrastructure assets to generate recurring income alongside economic development.
For the property and industrial sectors, the development could become a major catalyst for Carey Island, Port Klang, Klang, and the surrounding Selangor logistics corridor. Large-scale port investments typically stimulate demand for industrial parks, warehouses, logistics facilities, transportation infrastructure and supporting commercial developments, creating long-term opportunities for manufacturers, logistics providers, developers and investors. As regulatory approvals move closer to completion, the project is likely to become a key driver of industrial and economic growth in Selangor over the coming decade.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 10 Jul 26
Malaysia