- The local press reported that Bintulu Port Holdings has released another major package of the RM2bil Samalaju Port project in Sarawak. Tenders would close next month.

- The package is for the construction of five wharves that can accommodate handymax and handysize bulk carriers.

- The four handymax wharves are constructed based on specifications that can handle vessels up to 50,000 deadweight tonnes (DWT). Three of these measure 210 meters in length, while the fourth is 250 metres long.

- On the other hand, the sole handysize wharf (230 metres in length) will cater for vessels up to 20,000 DWT.

- Meanwhile, we understand that the port’s new interim facilities will become operational in three months time. The facilities – comprising two wharves and a roll-on roll-off ramp – are designed to handle up to four million tonnes of cargo.

- In July, Bintulu Port awarded the breakwater and associated work package to a consortium comprising Pekerjaan Piasau Konkerit and China Harbour Engineering Co Ltd (CHEC). This contract is worth an estimated RM306mil.

- We are encouraged by the accelerating progress of Samalaju Port. The new deep-sea port is a crucial component of SCORE as a gateway for various energy-intensive industries that are mushrooming within this growth region, particularly within Samalaju Industrial Park.

- To date, we understand that five major investors have already committed to invest at Samalaju Industrial Park.

- Including this latest tender, we estimate some RM800mil worth of job opportunities.

- The development at Samalaju Port could be a precursor to a re-acceleration of long overdue infrastructure works in Sarawak. It just comes after the award of c.RM1.2bil worth of jobs for Sarawak’s 500kV ‘backbone transmission line’ in six packages in late August, two of which went to Sarawak Cable.

- A few of the other upcoming jobs in the spotlight include:- (i) Balingian power plant (US$600mil-US$700mil); (ii) Remaining phases of Kuching central sewerage system (RM1.7bil); (iii) Sibu-Tg. Manis water supply and treatment project (RM1bil); (iv) Two new hydro dams (Baleh-1,200MW; Baram – 1,300MW); and (iv) Pan Borneo Highway (RM22bil; RM457mil has been allocated between 2012 and 2015).

- Our top picks to leverage on SCORE are Hock Seng Lee, Sarawak Cable, KKB Engineering and Bintulu Port Holdings. Our other BUYs for this theme include Press Metal and Naim Holdings. 

Source: AmeSecurities