Harbour-Link plans mixed township
Group managing director Yong Piaw Soon said Harbour-Link had launched phase I and II of the project with mixed development of shophouses and semi-detached industrial buildings.
“The response to this project is very encouraging. We believe this project has the potential to bring in good revenue for the group in the coming years,” he added in the newly-released Harbour-Link’s 2014 annual report.
Yong did not mention the number of phases that would be carried out and the estimated gross development value (GDV) of the mixed development project. A local research house has put the GDV at RM1bil.
Yong said Harbour-Link, a major logistics player in Sarawak and Sabah, had ventured into property development to take advantage of the influx of foreign investors into Sarawak Corridor of Renewable Energy (Score) and further development of the Malaysian Liquified Natural Gas (MLNG) plant and other oil and gas related projects in Bintulu.
Harbour-Link’s core businesses are shipping and marine services, engineering contract and integrated logistics services and equipment rental.
Yong said the group’s integrated logistics services and equipment rental segment would continue to benefit from the economic activities driven by the Government Transformation Programme (GTP) and Economic Transformation Programme (ETP).
“More specifically, as mega development plans – such as Score, Sabah Development Corridor and Refinery and Petrochemical Integrated Development (Rapid) (in Johor) progress on – it will create an influx of business opportunities to which, we believe, we are well positioned to fully leverage on these developments.
“Coupled with strong demand for offshore and onshore support in the oil and gas sector amid growing exploration and production activities, we believe this will catapult the demand for our logistics services and usage of heavy equipment and machineries. Thus, revenue contribution from this business segment will continue to dominate the group’s revenue in the coming year,” he added.
Yong said although the group’s shipping and marine services segment looked competitive going forward due to industry players adding more vessels’ tonnage into the market which would affect every operator’s cargo volume and thus reducing the freight rates, Harbour-Link remained optimistic of its performance domestically and regionally.
He said this was because the group had strong network bases and a dynamic team of shipping expertise with flexible operational skills to tackle the adverse market situation.
On the outlook of Harbour-Link’s engineering contract segment, Yong said the company was positive that it could maintain the growth momentum with on-going flow of engineering project works in the pipeline.
“This is further supported by initiatives to boost the oil and gas sector, especially in projects focused on developing oil and gas manufacturing and storage facilities within Malaysia and other intra-Asian developing regions.
Reviewing Harbour-Link’s performance for financial year ended June 30, 2014,Yong said it was by far the best over 10 years after the company was listed on Bursa Malaysia. The group’s pre-tax profit soared to RM51mil on turnover of RM457.6mil against RM17.7mil and RM422.7mil respectively in the preceding year.
Yong attributed the group’s impressive performance to high demand for logistics services and engineering contract works spurred by mega development projects in the region.