Dubai International break the ground for AED 2 billion Port Klang 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 US $ 520 Millions (AED 2 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 offers investment opportunities for multinational companies, small & 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.

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.

"This move comes as part of our strategic plan for global expansion under the auspices of HH Sheikh Mohammed Bin Rashid, Crown Prince of Dubai and Minister of Defence. It complements Dubai International series of successes including Djibouti Free Zone (DFZ), which was launched last month, and its occupancy already surpassed the expectations with a rate of 60% of occupancy of the facilities." Bin Sulayem said.

"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. The success in managing free zones & international ports has built our confidence at being capable to effectively compete globally. In particular, DPA has attracted 120-shipping lines & annually registers double-digit standard growth rates in handling containers & general cargo. Also, Jebel Ali Free Zone has attracted over 3300 multi-national companies." added Bin Sulayem.

"We have gained knowledge in managing the requirements of our clients over the last 20 years, enabling us to internationally export & market our experience. The strategic location of Port Klang is in line with our plan of creating a world free zone management network. This would make Dubai a world hub for distribution & logistics services as well as enhancing our Government's objectives & domestic growth. The launching of PKFZ does not constitute a new addition to Dubai in expanding its overseas investments only, but also demonstrates the growing economic relationship between Malaysia & Dubai. We are confident that such relationship would contribute to boosting the economic ties in the area."

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% as compared with the previous year. The volume of non-oil foreign trade in last year was AED 2.439 Billion (US $ 664.5 Millions) compared to AED 1.669 Billion (US $ 454.7 Millions) in 2002.

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.

Mohammed Sharaf, Managing Director of DI said, "Jebel Ali Free Zone International will offer services & facilities within PKFZ covering areas of Management, Sales, Marketing & Operations. It will also assist with recruiting & training PKFZ manpower & offer service to customers. Consultancy & Assistance in implementing all free zone-related operational plans & programmes have also been provided."

It is worth mentioning, 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 that customers have direct access to the port for convenient export or import of goods.