12/31/2004 BUSINESS TIMES (MALAYSIA) - SURIA Capital Holdings Bhd, whichacquired seven ports in Sabah from the state government in September, isbuying RM70 million worth of new handling equipment to beef up its portfacilities.

The equipment, to be delivered within the next four to six months, includetwo mobile harbour cranes, 35 forklifts, four reachstackers, nine emptycontainer handlers, seven shuttle carriers, 26 terminal tractors, 26trailers and 12 spreaders.

Suria Group managing director Abu Bakar Abas said the move is part ofefforts to position the seven ports in Sabah as premier facilities centrein the region.

"Over the last four months, all efforts have been channelled towardsmanaging the operation of ports. This involves enhancing operationefficiency, process and method changes, manpower re-deployments and newequipment," he said at a press conference in Kota Kinabalu yesterday. Theseven ports are in Kota Kinabalu, Kudat, Sandakan, Lahad Datu, Tawau,Kunak and the Sepanggar Bay Oil Terminal. Operations of ports weretransferred from the Sabah Ports Authority to Suria Capital subsidiarySabah Ports Sdn Bhd on September 1.

Abu Bakar said so far there has been a 14 per cent growth in total cargohandled from January to November this year compared to the correspondingperiod last year. Construction of the Sepanggar Bay container port, nowhalf-way completed, will provide more opportunities for manufacturers atthe nearby Kota Kinabalu Industrial Park to export their goods.

The new facility, which will provide 500m of berth length and 12.5m draft,should be operational by early 2006.

Abu Bakar said Sabah Ports will also build a two-berth palm oil jetty atSandakan Port costing RM25 million to handle an increase in export tonnageof palm oil.

The company will also upgrade the Kunak oil jetty, with plans to constructa new jetty in future.

Abu Bakar said the firm is also working with key players in the SungaiMowtas Palm Oil Industrial Cluster and the Lahad Datu Port to develop morejetties to handle shipment of the commodity.

He said tonnage of palm oil handled at ports is expected to increase tosix million tonnes by 2010 from the present 3.7 million tonnes.

On Suria Group's future direction, Abu Bakar said apart from enhancingefficiency in ports operations, which is its core business, the company isalso venturing into related businesses.

Citing an example, he said wholly-owned subsidiary Suria Bumiria Sdn Bhdwill undertake commercial development at the current Kota Kinabalu portarea.

The area, to be called Jesselton Waterfront, will house internationalclass hotels, convention centres, cafes, marinas and a cruise shipterminal.

The group also has 70 per cent stake in S.P. Satria Sdn Bhd forprocurement, supply and maintenance of port equipment. Although its maincustomer is Sabah Ports, the company will extend its base to other portsin the country and region.

Sabah Port's information and communication technology will be enhanced byTricubes Suria Sdn Bhd, a joint venture between Suria Group (60 per cent)and Tricubes Computers (Sabah) Sdn Bhd.

Suria, which is a minority equity shareholder in Hikmat Bumimaju Sdn Bhd,will, through its wholly-owned subsidiary Mega Intraway Sdn Bhd, upgradethe 134km railway track from Tanjung Aru to Tenom.