POIC – Dongnam signing opens up Korean investments

 
KOTA KINABALU: A lease agreement between a Sabah government-owned company and a South Korean conglomerate is seen as opening up links to investments from the industrial giant.
POIC Sabah Sdn Bhd, the developer of the POIC Lahad Datu signed on Sept 30 an agreement with Dongnam A Circulater Co Ltd (or Dongnam) for the leasing of 4.5 acres of land for the setting up of a logistics base.
POIC Sabah Chief Executive Officer Datuk Fredian Gan who signed the lease said, the said the deal shows Dongnam’s recognition of POIC Lahad Datu and the east coast of Sabah as an ideal staging post for markets in East Asean, and the overall economic potentials of the region.
“The entry of Dongnam is timely and points to the immense potentials to further strengthen the involvement of Korean companies in the East Coast of Sabah and we look forward to facilitating the entry of consortium members of Dongnam into Lahad Datu,” Gan said in reference to Dongnam being a consortium of 30 companies involved in a diversified range of businesses from shipping to manufacturing.
The signing marked the conclusion of a negotiation which began in 2019, and was interrupted by two years of COVID 19 restrictions.  Dongnam was represented at the signing by its President Hwang Su Man and witnessed by Mr You Jang Woo, International Sales Director.
The signing ceremony held at the POIC Sabah head office in Kota Kinabalu was witnessed by Mr Benedick Bisoni, Deputy Permanent Secretary, Ministry of Industrial Development, POIC Sabah Chairman Datuk Seri Panglima Yong Teck Lee and Board of Directors.
The lease tenure is for 20 years, with an option for another 20.
The Dongnam group is currently developing the Busan New Port West Container Complex Logistic Terminal. Its shipping and logistics network worldwide will be an asset to POIC Lahad Datu which, being a relatively new port in operation since 2013, is developing its shipping connectivity.
The Korean government last year granted Dongnam permission to operate the POIC-Busan shipping route. This is significant granted Busan being one of the most important ports in Korea.
 
Aside from cargo storage, assembly and distribution, Dongnam intends to use Lahad Datu to develop a trading system linking Korea’s industrial prowess with the renowned vast natural resources in Sabah and the surrounding territories of Philippines, Indonesia and Brunei. Some resources on the export list include frozen seafood, palm kernel shells, sludge oil (residue from palm oil refineries, wood pellets and wood furniture.
POIC has been informed that some of Dongnam’s member companies are already planning to set up factories at POIC Lahad Datu, and ship to Sabah Korean products such as food and construction materials.
Gan said he sees in the near future greater cargo throughout via POIC Lahad Datu Port consisting of POIC’s liquid, dry and container terminals.