Malaysia Airports Holdings Bhd (MAHB) marked its maiden venture into China today with the signing of a joint cooperation agreement with Nagamas International Bhd (NIB).

The agreement will faciliate the joint provision of airport operation, management and technical consultancy services for the Yongzhou Lingling Airport in China.

'China still remains a huge potential businss destination for us and we have taken another step forward towards venturing into China, as we have the expertise to manage airports, globally,' MAHB Chairman Tan Sri Dr Aris Othman told reporters here today.

He said the Yongzhou airport presented great potential to become a cargo hub and MAHB would conduct some preliminary studies and review options to expand the airport.

'When we improve the facilities and make the airport more efficient, it will attract more airlines to land there,' he said.

He added the airport still had potential as passenger traffic had doubled in 2010 to 60,000 passengers from 30,000 passengers in 2009. However, no investment value was revealed as the venture was still in preliminary discussions.

Asked on possible acquisitions that may support the project, Aris
said MAHB currently had its resources tied to the new KLIA2 project and its manpower was spread across the countries it was involved in.

The agreement today was signed between subsidiary, Malaysia Airports Consultancy Services Sdn Bhd and NIB's Hong Kong-based wholly-owned subsidiary, Nagamas Enterprise (HK) Ltd, witnessed by Deputy Finance Minister Datuk Donald Lim Siang Chai and Yongzhou Mayor Gong Wusheng.

At the same ceremony, Nagamas also signed a joint cooperation agreement with the People's Government of Yongzhou City to embark on the China-Asean Green Free Trade Zone project.

Nagamas International Chairman Datuk Ng Kek Kiong said the project entailed main tourism economic development, the development of a halal industrial park coupled with a budget international airport with aspirations to become a
logistics hub. -- Bernama