Westports Holdings, the main gateway for container and conventional cargo in central Malaysia, has bought 154.2 hectares of undersea land from the Selangor State Development Corporation (PKNS) to expand its container terminals, according to a financial filing.
The undersea land has cost Westport just over USD $28 million, and will be used to expand container terminals 10 to 19 at the Port Klang.
It is Malaysia's biggest container terminal and is closely situated to the Straits of Malacca, one of Southeast Asia’s most popular shipping routes.
In its financial filing on September 13 2018, Westports Holdings said: “The Board of Directors of WHB is pleased to announce that Westports Malaysia Sdn Bh, has on 13 September 2018 entered into a Sale and Purchase Agreement with Selangor State Development Corporation (PKNS) or Vendor dated 13 September 2018 for the acquisition of a piece of land below the sea in Pulau Indah”.
The acquisition comes after Westports Holdings’ announced its first half 2018 TEU had increased by 20% from the same time in 2017. It also is another sign of Malaysia’s significance as a regional and global shipping hub.
The Straits of Malacca’s shipping traffic has continued to increase in recent years and hit an all-time high in 2017 of 84,456 container vessels.