Muhibbah Australian JV secures RM1.05b contract

KUALA LUMPUR (Dec 23): Muhibbah Engineering (M) Bhd has announced that its 50:50 joint venture with Australia's Monadelphous Group Ltd has won a A$330 million (RM1.06 billion) contract for the construction of an approach jetty and ship berth in Queensland, Australia.

The facilities will be constructed for a project by Wiggins Island Coal Export Terminal Pty Ltd (Wicet), which is privately owned and funded by a group of Queensland coal exporters.

"This marks another new era for Muhibbah group's expansion of marine-related business into advanced countries such as Australia," the company said in an announcement to Bursa Malaysia on Thursday.

The contract, which involves the first stage of the project by Wicet, was awarded to the Monadelphous Muhibbah Marine JV.

"The joint venture brings together Muhibbah's global expertise in the delivery of marine and port construction works and Monadelphous' expertise in the civil construction of large-scale projects for Australian resources customers," it said.

The JV will start work on the project immediately and to be completed by the first quarter of 2014.

The contract involves the construction of an offshore plant and infrastructure comprising a 1.8km approach jetty and transfer tower platform, wharf, wharf conveyor, berthing and mooring dolphins, ship access platforms, jetty conveyor and transfer tower. It will increase the company's order book to RM3.84 billion from RM2.79 billion recorded as at Nov 18, which comprised RM1.98 billion from its infrastructure construction division, RM609 million from the crane division and RM200 million from  shipyard.

Wicet aims to build the export facility to meet global demand for thermal and metallurgical coal.

Stage one of the project carries an annual coal export capacity of 27 million tonnes, which will grow to 80 million tonnes once the terminal is fully developed.

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