The tiny sultanate of Brunei on Borneo's northern coast has announced an ambitious plan to develop what its officials have described as a RM5.7 billion global mega hub port to compete with the region's shipping hubs.

The deep sea port is to be built on a 950-hectare island of Pulau Muara Besar, only one kilometre from the shore that has a water depth of 20 metres compared with the depth of 14.5 metre and 15.5 metres in Singapore and Malaysia respectively.

This was disclosed by Brunei Economic Development Board (BEDB) assistant chief executive Lim Hong Jin during a briefing for state-sponsored foreign journalists attending the sultanate's national day celebrations yesterday.

The official said the plan was to bring the port up and running by 2008 with possibly the participation of a European-based port operator. Without naming them, he disclosed that two European port operators had indicated interest in a 70:30 partnership with the Brunei government.

A global consultancy firm Halcrow had made a feasibility study indicating it was possible to build a globally competitive port in Brunei "as long as we get the right partner". Lim added that Halcrow believed that Brunei has a 70 percent chance of getting the right partner.

Lim said the port would be among the top six biggest in the world and would be able to handle the next generation of container ships and supertankers.

Fighting for share

Brunei's new port plan, in addition to five other major economic diversification projects, including the development of a large industrial estate to cater for the oil and gas downstream activities, indicates it is going to fight for a share of the rapidly-growing regional port business.

It regards itself as strategically located for a viable port within the Brunei-Indonesia-Malaysia-Philippine-East Asia Growth Area (BIMP-EAGA) and is keen to exploit its potentials for a transshipment hub port serving the region and beyond.

Presently, the PSA Muara Container Terminal which is jointly operated by PSA Singapore and a local partner handles about 80,000 TEUs per annum.

Malaysiakini understands that the joint venture may be subject to a review, with the possibility of even PSA withdrawing with either the local partner carrying on its own or with a new joint venture foreign partner coming in ahead of the plan for the development of the deep sea port at Pulau Muara Besar.

Lim said the new port will be marketed worldwide by mid year after the government has finalised the deal with a renowned European port operator.