Westports and Northport jointly purchase Boustead Cruise Center for RM230k

KUALA LUMPUR: Westports Holdings Bhd and Northport (M) Bhd have agreed to jointly acquire Boustead Cruise Center Sdn Bhd (BCC) for RM230 million.

The center, a subsidiary of Boustead Holdings Bhd, currently provides port facilities and services to cruise ships and navy vessels with its 28.25ha facility at Pulau Indah in Klang.

Upon completion of the transaction, Klang Port Management Sdn Bhd (KPM), the wholly owned subsidiary of Westports and Northport, would each hold a 50% stake in BCC, Westports said in a statement today.

Westports group managing director Ruben Emir Gnanalingam said the acquisition would give each party the opportunity to expand into the business of managing a cruise terminal.

“Our terminals at Westports occasionally host cruise ships. This business segment has been affected by the pandemic during the past year, but a certain reversion to the norm is expected for the cruise business in the medium and long term, “he said.

In addition to the jetty used to host cruise ships and navy vessels, BCC also owns two parcels of land with a five-story terminal building and parking facilities, and six other adjacent parcels of land that have yet to be fully developed.

Westports said it would finance the acquisition from its internally generated funds, with the acquisition expected to be completed within six months.

The two buyers would not assume any liability or guarantees for the acquisition, he added.

“As operators of the two ports that make up Port Klang, Westports and Northport we will jointly leverage our expertise and network to explore potential logistics or other complementary business activities that could make use of BCC’s oceanfront land parcels,” said Ruben.

He also said that existing staff at BCC would be retained.

“The BCC staff have been managing the main cruise terminal within Port Klang, and we value their job performance and experience.

“Westports and Northport will jointly explore additional business activities to enhance the well-being of BCC, as well as to promote the competitiveness of Port Klang,” he said.