When will Port Klang Free Zone fully repay its RM3.8 billion federal loan?

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Port Klang Free Zone projected to fully repay its RM3.8 billion federal loan in approximately 29 years.

Port Klang Free Zone (PKFZ) is on track to settle its RM3.8 billion federal loan within approximately 29 years, based on its current repayment schedule to the Port Klang Authority (PKA). PKFZ makes quarterly payments of RM55 million to PKA, which is responsible for servicing the original RM3.8 billion loan obtained from the Ministry of Finance.
Repayment Structure and Timeline

The Port Klang Authority (PKA) secured a RM3.8 billion loan from the Ministry of Finance, with PKFZ's assets falling under PKA's purview. Consequently, PKA is obligated to repay this loan through installments. The current quarterly payment from PKFZ to PKA stands at RM55 million. At this rate, it is projected that the entire loan amount will be repaid in approximately 29 years. PKA has maintained a consistent payment record and has not defaulted on its obligations.
Revenue Generation and Growth

PKFZ has demonstrated significant financial rehabilitation and growth in recent years. Last year, PKA collected RM220 million from the zone. Over the past five years, PKFZ has experienced robust double-digit growth, with a compound annual growth rate (CAGR) of 17.6 per cent. This expansion is primarily driven by an increase in lease venue agreements and a rise in cargo movement facilitated through Westports.
Projected Financial Performance

For the current year, PKFZ is anticipated to generate RM96.62 million in revenue. This revenue is based on an estimated cargo throughput of 327,000 TEU (Twenty-foot Equivalent Units) and 4.12 million FWT (Forty-foot Weight Tons). With this projected revenue, PKFZ expects to achieve a net income surplus of approximately RM80 million.
Transformation Master Plan and Future Initiatives

PKFZ's financial recovery is further supported by its internally funded Transformation Master Plan (TMP), which does not require any capital injection from the government. A key component of the TMP involves establishing duty-free retail outlets within PKFZ's Commercial Zone, with the first tenants expected to commence operations in about six months. Additionally, Budget 2020 includes a RM50 million allocation specifically for improving roads within the Port Klang area, aiming to enhance connectivity. Other planned TMP initiatives include the development of a Maritime Logistics Academy and a Maritime Science Discovery Centre, underscoring a commitment to holistic development within the zone.

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When will Port Klang Free Zone fully repay its RM3.8 billion federal loan?

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