Who owns port dredging concession?


Dredging of a ports is big business and can cost hundreds of millions of ringgit. Do you know who has the concession to dredge ports in Malaysia? 

The federal government wants to privatise the Penang port operations to Syed Mokhtar’s Sea Terminal Shd Bhd.

In Penang, the dredging of the northern channel is expected to cost RM350m. Transport Minister and MCA secretary-general Kong Cho Ha was reported as saying that “one of the conditions in the privatisation agreement for the Penang port is that the successful company must bear the cost of dredging Penang Port”.

So which companies are involved in port dredging in Malaysia?

According to the Borneo Post, Integrated Marine Works, incorporated in 1993, entered into a 15-year concession agreement with the Malaysian government in 2004 to carry out the dredging of all ports and harbours under federal jurisdiction.

IMW has been involved in Johor, Port Klang and Penang, among others.

IMW even filed a suit in the KL High Court claiming that the dredging work for the new Samalaju Port in Sarawak, undertaken by Bintulu Port Holdings Bhd, should have been awarded to IMW without tender under the Concession Agreement. The work is believed to be worth hundreds of millions of ringgit.

But the High Court tossed out the case after agreeing with the federal government and Bintulu Port Holdings Bhd that Samalaju Port was a state port and hence did not come under the concession agreement, which covers ports under the federal government. (Others want a slice of the action!)

(Petronas has a 32.8 per cent stake in BPHB, Sarawak State Financial Secretary (30.7 per cent) and Kumpulan Wang Persaraan (9.5 per cent). (Source: Dredging Today.)

So who owns IMW?

In 2002, news reports said that Integrated Marine Works Sdn Bhd, “a joint venture between local dredging specialist Inai Kiara Sdn Bhd and Syed Mokhtar-controlled Seaport Terminal (Johor) Sdn Bhd – has signed an agreement with Ballast Ham Dredging (BHD) (of Netherlands), to establish a reclamation and dredging company based in Malaysia.

“The joint-venture company, IMW-BHD Sdn Bhd, would be 51 per cent owned by IMW and 49 per cent owned by BHD.

(Source: Dredging News and India Times)

Ballast Ham transferred a 12,500 m3 capacity trailing suction hopper dredger HAM 310 to the new IMW Dredging and into the Malaysian registry (Maritime Journal).

Mahathir reportedly witnessed the agreement signing ceremony on board BHD’s trailing suction hopper dredger Rotterdam in Johor port (Sand and Gravel).

In 2007, MMC Corporation Bhd informed Bursa that IMW was a 51 per cent subsidiary of Seaport Terminal (Johore) Sdn. Bhd. MMC said that IMW “is involved in the business of dredging, breakwater, revetment, shore protection works, land reclamation and other marine infrastructure construction activities.” And it noted that IMW was the only company approved by the Malaysian government to conduct dredging for all major ports in Malaysia.

But by 2012, the Borneo Post reported that IMW “was the subsidiary of Inai Kiara Sdn Bhd, the largest Malaysian-based dredging company”.

Now who really owns Inai Kiara Sdn Bhd, which began as a small dredging concern in 1997?

For the largest dredging company in Malaysia, Inai Kiara’s website remarkably only has one page! Its Facebook page is not very revealing either.

Some questions to ponder over:

  • Who really owns Inai Kiara Sdn Bhd?
  • How did IMW become the only company approved to carry out dredging work in all ports under federal jurisdiction for 15 years?
  • Why didn’t Bintulu port opt for IMW?
  • What are the checks and balances in place to ensure that the federal government/ports are getting their money’s worth from dredging?
  • Is there a competent truly independent operations audit on the entire process of maintenance dredging including the pre-survey, the post-survey and the cubic metres actually dredged?
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Abang Zek

Sure good plan for the umno to have the business. Otherwise it goes ti dap and dap dont contribute to the rest…


More info on Inai Kiara can be obtained at http://inaikiara.blogspot.com/

the mythbuster

In the near future, Syed Mokhtar will own (practically) everything that is worth owning in Malaysia and then he will play his role of doling out money and other perks to ALL the UMNO B leaches who in turn will Perhaps) see to it that he gets all the negotiated tenders without fail.

The evil m… developed a very safe patronage system for himself, his family and the cronies of UMNO B.

With so much at stake, is it any wonder why they are trying to gobble up everything BEFORE the 13th GE?


Syed mohkthar owns inai kiara.


Anil, I think a more appropriate title should be “Which Umno crony owns port dredging concession?”.

Whatever this Umno/BN regime does, is to line their pockets and enrich themselves and their kin. But their silly “partners” somehow seem contented floating like turds under the umno table waiting for whatever leftovers thrown at them. The irony is their leaders do seem happy lot as frontline soldiers for Umno. Saw what happened in PKFZ? Sad huh, where’s their self-worth I wonder?

tan tanjong bungah

Hi everyone, IMW given a 15-year dredging of Federal-owned ports concession in 2004 is a MONOPOLY, an UMNO Baru crony company that can bill the dredging works in Malaysian ports – at inflated prices(??) How was IMW awarded the dredging concession, through open tender? It is highly suspicious now why the Federal Govt is so anxious to privatise Penang Port to a well-known UMNO Baru crony, as apart from the latter getting the socialised assets of Penang Port, the RM350 millions for dredging the Penang Port would land on the lap of IMW(?) So, this is what the slogan People… Read more »


# It is highly suspicious now why the Federal Govt is so anxious to privatise Penang Port #

– Yes, that’s what I thought, why now and at the speed it’s going with that loud-hailer in-charge!