Transport Ministry ends port-dredging concession with IMW, cites breach of contract
PUTRAJAYA, June 13 — The Ministry of Transport said today that it has terminated the port dredging and reclamation concession with Integrated Marine Works Sdn Bhd (IMW), ending a 15-year monopoly that began in 2004.
Transport Minister Anthony Loke announced the termination at a press conference here today, citing a breach of contract.
Loke said IMW had defaulted on concession charges and failed to inform the ministry that ownership of the company had changed hands, which violated the terms of the concession. The notice of termination was served earlier this week.
“Among the breach of terms was that IMW had a change of ownership without government approval,” the minister told reporters.
“When the dredging and reclamation concession was signed, IMW was fully owned by Inai Kiara Sdn Bhd. However, around July 2023, the MOT found out that the company Inai Kiara had been wound up by the Shah Alam Court in an order dated April 2023,” he added.
“Further investigation found Inai Kiara had been changed to Inai Warisan without government approval. This means IMW had breached one of the terms of the concession.”
IMW was granted a 15-year extension of its concession to provide dredging and reclamation works at all federal ports owned by the government in May 2022.
Among ports owned by the government are Port Klang, which is made up of Northport and Westports in Selangor, Port of Tanjung Pelepas and Johor Port in Johor, Penang Port, Teluk Ewa Port in Langkawi, Tanjung Bruas Port in Melaka, Kemaman Port in Terengganu, Kuantan Port in Pahang, and Labuan Port.
The Edge Weekly reported in May that IMW is in financial distress and its creditors had filed a suit to liquidate the company. Among them was Maybank, which appointed AdamPrimus & Co, according to the business paper.
The government had already suspended IMW’s concession at the time, the paper added. Loke said IMW was already failing to pay the concession charges as scheduled since last year.
IMW was granted exclusive rights to service government-owned ports in December 2004 under a 15-year concession that came under scrutiny.
Loke said the first Pakatan Harapan led government had wanted to end the concession as part of its push to put a stop on monopolistic practices, but the move was upended after the coalition was ousted mid-term following a power grab triggered by several defections.
IMW had total assets of RM191.9 million and total liabilities pegged at RM138.99 million, out of which more than 93 per cent or RM129.84 million were current liabilities according to filings made in 2021, The Edge Weekly reported.
