Guangzhou’s port officials have signed an agreement with their counterparts in the Malaysian state of Malacca to establish a friendly relationship – making the Malacca port the 38th friendly port of Guangzhou.
Malaysia has always been China’s largest trading partner in the Association of Southeast Asian Nations (ASEAN). Bilateral trade between the two countries has reached 100 billion (USD), accounting for one fifth of the total trading volume between China and ASEAN nations.
The Strait of Malacca is a strategic location connecting the Pacific and Indian oceans. With the cooperation of Chinese companies, Malacca is building a deep water sea port, Melaka Gateway Port.
Liow Tiong Lai, Malaysian minister of transport, said of the relationship between the two ports, “Clearly, there is significant opportunity and potential for growth.”
Chang Min, director general of the Guangzhou Port Authority, said, “The container throughput of the Guangzhou port will reach 18,680,000 TEUs (twenty-foot equivalent units) at the end of 2016. The establishment of the sister relationship could offer enormous opportunities to relative enterprises of both ports.”
In accordance with China’s Belt and Road initiative, the agreement encourages communication and cooperation between Guangzhou port and the Malacca port on items like infrastructural construction and logistics service.
Tan Sri Kong Cho Ha, chairman of the Malacca Port Authority, said, “We hope the cooperation with Guangzhou port could be deepened through the increase of ship routes, trade volume and information sharing on the ports’ scientific innovations.”