PUTRAJAYA: The government has terminated its 15-year port dredging and concession agreement with Integrated Marine Works Sdn Bhd (IMW) after the company breached multiple agreement terms.
Transport Minister Anthony Loke said that the breaches included IMW changing shareholders without government approval and failure to pay concession charges.
“When the agreement was signed, IMW was wholly-owned by Inai Kiara Sdn Bhd. However around July 2023, the ministry was informed that Inai Kiara had been dissolved following a Winding Up Order issued by the Shah Alam High Court dated April 11, 2023.
“Further investigations by the ministry found that the shareholders of IMW had been changed from Inai Kiara to Inai Warisan without government approval which breaches a term of the agreement that stipulates that the company cannot change shareholders without government approval.
“Additionally, IMW was found to have failed to make the concession charge payment for 2023 as stipulated in the Concession Agreement,” he told a press conference at the Transport Ministry office here on Thursday (June 13)
Loke said the ministry had issued a default notice dated Jan 29 to the company with a three-month remedy period until April 29 in which the company failed to remedy the breach of terms.
The ministry has since issued a termination notice to IMW on Tuesday (June 11).
Going forward, Loke said the government would not look to appoint a new company to replace IMW.
Instead, he said a new policy would be formulated to encourage the growth of the local dredging and reclamation industry to create better competitiveness in the market.
“It should be emphasised that most dredging and reclamation projects at federal ports are funded by the respective port operators,” Loke added.
IMW was first appointed to undertake all port dredging and reclamation works for all federal ports under a 15-year agreement on Dec 21, 2004
After the agreement expired in 2019, the government in 2021 decided to reappoint IMW who was then granted a 15-year extension of its concession that would last until 2036.
The agreement was then signed by the government and the company on May 30, 2022.
Current federal ports owned by the government include Port Klang, which is made up of Northport and Westports in Selangor; Port of Tanjung Pelepas and Johor Port in Johor; Penang Port; Teluk Ewa Port in Langkawi; Tanjung Bruas Port in Melaka; Kemaman Port in Terengganu; Kuantan Port in Pahang; Labuan Port; and Lumut Port under the Marine Department.
