5 July 2004

DUBAI - Dubai International (DI) has formally broken ground for a free zone next to Port Kalang in Malaysia (PKFZ) under a 15-year management contract within one month since the launching of Djibouti Free Zone.

Dato Seri Najib Razaq, Malaysian Deputy Prime Minister, Sultan bin Sulayem, PCFC Executive Chairman, Mohammed Sharaf, Managing Director of DI and a number of high-ranking officials, dignitaries  and businessmen, attended the ceremony.

The Malaysian government is investing $520 millions (Dh2 billion) to develop a free zone in a total area of 405 hectare accommodating industrial and commercial activity in collaboration with Jebel Ali International. The project, which will be ready within 2 years as the Malaysian government agreed to transform the area into a free trade manufacturing and commercial area, forms a new turn in the future face of Port Kalang. 

The PKFZ will offer investment opportunities for multinational companies, small and medium size industries, distribution, value-added & logistics services from a strategic location with a potential reach to the vast market covering the Asian countries & regions beyond.

The development of the free zone complements the Selangor State government's ambitious plans to make PKFZ into an industrial and commercial, center giving investors the option to build their own facilities.

Bin Sulayem urged the Malaysian and international companies to make use of incentives that PKFZ offer. He explained that the exchange of trade volume between Dubai & Malaysia remarkably increased in 2003 by 68 per cent as compared with the previous year. The volume of non-oil foreign trade in last year was Dh2.439 billion ($664.5 millions) compared to Dh1.669 billion ($454.7 millions) in 2002.

The project components comprise multi-storey smart office buildings in which facilities are designed for use as operations & trade offices as well as for conventions & trade exhibitions.

PKFZ provides an excellent commercial infrastructure in terms of leasing offices, warehouses or vacant lots for light industries or construction of stores. Customs formalities within PKFZ will be kept at minimum. Business can be conducted within the area with minimal bureaucratic requirements.

Bin Sulayem said: "This move comes as part of our strategic plan for global expansion under the auspices of General Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and UAE Minister of Defence. It complements Dubai International series of successes including Djibouti Free Zone (DFZ), which was launched last month.  The success of DI in managing a number of international ports like Jeddah South Container Terminal, Djibouti Ports, Port Constantza in Romania, Visakha Terminal affirms Dubai's strong position in world economic & social developments. Also, Jebel Ali Free Zone has attracted over 3300 multi-national companies.

The Malaysian Deputy Prime Minister announced that PKFZ is the second largest development project after the Malaysian Government set up all services in the Port in 1990 and we expect the completion of this FZ within two years.

Moreover, Port Klang has trading links to 120 countries and is linked by major shipping lines to 500 ports around the world. Investors may connect to sea or air transportation quickly and conveniently to any destination in the world. PKFZ is virtually next door to Westport and nearest to Malaysian Capital and International Airport, which means customers, have direct access to the port for convenient export or import of goods.

BY A STAFF REPORTER

© Khaleej Times 2004