Harbour-Link eyeing Bakun, aluminium projects
HARBOUR-LINK (M) Group Bhd, which is taking over the listed status of Tongkah Holdings Bhd, is eyeing lucrative projects within the Bakun hydroelectric power and proposed US$2bil aluminium smelter projects in Sarawak.
Managing director Francis Yong Piaw Soon said the group planned to participate in the logistics, transportation and equipment rental portion of these projects.
It will begin with the RM9bil Bakun project. The group, slated for a listing on the KLSE main board on Jan 6, is believed to be the largest logistics company in Bintulu.
It has three subsidiaries – Harbour-Link (M) Sdn Bhd, Harbour Agencies (S’wak) Sdn Bhd and Eastern Soldar Engineering & Construction Sdn Bhd – and is principally involved in shipping, freight forwarding, and engineering services, as well as support services to the oil and gas industry.
“We have submitted the bids for the Bakun project. In terms of locality and capacity, we see an advantage over our competitors,” he told a press conference in Petaling Jaya yesterday.
If Harbour-Link were successful, Yong said, the contracts would contribute 15%-20% to its sales turnover next year.
“We are aiming for the piling and structure development stage, which will commence early next year,” he said, adding that Harbour-Link was currently servicing the earthworks stage of the project.
He said the group was also negotiating to supply manpower to the project, which would require 4,000 to 5,000 workers.
Manpower will account for some 30% of the total cost of the 1,000MW hydroelectric project, which is due for completion in 2007.
Yong also said the group planned to tap the proposed aluminium smelter project in Similajau as well as the pulp and paper mill in Tatau, both in Sarawak.
“We can see an opportunity here to secure about RM50mil worth of contracts to mobilise some 300,000 tonnes of building and construction components for the project,” he said, adding that he believed work would begin towards the middle or end of next year.
On the company’s performance, Yong said, with the recent restructuring exercise, the group had beefed up its strength in oil and gas support services, which was expected to account for 50% of the group’s total earnings by the end of 2004, from about 30% currently.
Harbour-Link has forecast a net profit of RM17.3mil for the year ending June 30, 2004, from RM12.8mil this year.
“With Eastern Soldar in the group, we are capable of undertaking bigger projects, especially for Petronas,” he said.
The group’s oil and gas services arm has been strong overseas, especially in Myanmar, and has tendered for some RM100mil worth of projects overseas.