KUALA LUMPUR, Asdion Berhad (Asdion) entered into a Project Development Unincorporated Joint Venture Agreement (PDUJVA) with Kingdom Infra Holdings Sdn Bhd on May 6.
By entering into the PDUJVA, the company therefore rescinded the Heads of Agreement that was announced on March 15, 2019.
In a statement today, PDUJVA is to enable the Company to commence initial business operations by the third quarter of 2019, whilst preserving the salient features of the call including the valuation, profit guarantee and dry bulk offtake shipment volumes.
Highlight of the deal includes, five years services Offtake Agreements in dry bulk handling, with specific profit guarantee for the upcoming financial years.
Furthermore, the Offtake Agreements stipulates dry bulk shipment from Tumpat, Kelantan to China for a period of five years, with total guaranteed volume of 7,200,000 metric tons of minerals dry bulk shipment during the period, giving a guaranteed RM151 million in revenue.
The supply base upon completion of the first phase, would have capacity to handle 500,000 metric tons of dry bulk per month.
Tumpat is the last station in Kelantan to connect the resumption of the RM44 billion East Coast Rail Link (ECRL) project, recently announced by the federal government.
Source: BERNAMA (News Agency)