Redevelopment of Old Port Area - New Opportunities for Port Sustainability Sabah s Experience

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2017 GREEN PORT AND PORT SAFETY FORUM Redevelopment of Old Port Area - New Opportunities for Port Sustainability Sabah s Experience by NG KIAT MIN GROUP MANAGING DIRECTOR SURIA CAPITAL HOLDINGS BERHAD

CONTENTS CORPORATE INTRODUCTION A GLANCE AT SABAH, MALAYSIA INTRODUCTION OF KOTA KINABALU PORT REDEVELOPMENT OF OLD PORT AREA (EX-KOTA KINABALU PORT LAND) CORPORATE SOCIAL RESPONSIBILITY

CORPORATE INTRODUCTION

Corporate Structure Investment Holding and Property Development 100% 100% Port Operations Contract & Engineering, Ferry Terminal Operation 100% 100% Equipment Supply & Maintenance Bunkering & Logistics Services

Sabah Ports under Suria/SPSB Kudat Port Mowtas Oil Jetty Karamunting Oil Jetty Sapangar Bay Oil Terminal Sandakan Port Sapangar Bay Container Port Lahad Datu Port Lahad Datu Oil Jetty Kota Kinabalu Port Tanjung Batu Oil Jetty Tawau Port Kunak Port

Port Operations (Cargo Throughput) Year 2016 vs Year 2015 YTD YTD 31.12.2016 31.12.2015 Inc/ (Dec) Total Tonnage (MT'000) - At Wharf (excluding containers) 10,859 11,948 (1089) -9% - At Anchor 17,840 11,009 6,831 62% 28,699 22,957 5,742 25% Total TEUs 357,386 363,185 (5,799) -2%

A GLANCE AT THE STATE OF SABAH, MALAYSIA

L O C AT I O N O F S A B A H S. KOREA 8

Kota Kinabalu - Key Tourism Gateway from 17 Global Destinations with 3.5 million visitors in 2016

MAIN ATTRACTIONS IN SABAH

INTRODUCTION TO KOTA KINABALU PORT

KK PORT MULTICARGO PORT Built in the 1950s Was once a major port serving the whole of the West Coast hinterland of Sabah Handled all types of cargo including: General cargo Containers RORO vehicles Bulk oil 350-meter berth MAIN WHARF 7 berths 16,000 DWT Depth of 5.6m ~ 9.75m

KK Port City Centre 2KM KK International Airport 7-8 KM

Kota Kinabalu Port in 1960s

Kota Kinabalu Port in 1985 KOTA KINABALU TOWN OIL TANK FARM GENERAL CARGO

Kota Kinabalu Port in 2006 GENERAL CARGO CONTAINER OPERATION

Current Kota Kinabalu Port KOTA KINABALUJW GENERAL CARGO OPERATION FERRY TERMINAL

Need for Relocation of Port Operation KK Port is located in the vicinity of CBD Port activities (dangerous goods handling, heavy truck traffic, sound and air pollution) are not conducive for urbanisation/city development Passing of cargo trucks on the busy roads connecting the CBD contributes to heavy traffic and poses safety concerns

Eventual Relocation of Port Operation Construction of KK Port 2 Relocation of container operation to Sapangar Bay 3 Relocation of general cargo operation from KK Port 1950s 1985 2007 2017 2020 2032 1 Relocation of the liquid bulk operation to Sapangar Bay Construction of a new general cargo terminal at Sapangar Bay Completion of Sapangar Bay Integrated terminal

Relocation of Container Operation in 2007 Wangsa Timber CIS UiTM Petronas Kg. Kuala SBOT Stringent Environmental Impact Assessment carried out prior to port construction to ensure minimal impact on the environment corals were transferred to another location to preserve the marine ecosystem prior to land reclamation SLS Site for Development of New Sapangar Bay Container Port costing RM400 million

DEVELOPMENT OF SAPANGAR BAY INTEGRATED TERMINAL

TRANSSHIPMENT HUB DEVELOPMENT 5 BERTHS 15 METERS DRAFT 60K DWT DISPLACEMENT 1.25 MILLION TEUS THROUGHPUT FUTURE DEVELOPMENT

SAPANGAR BAY CONVENTIONAL CARGO TERMINAL FUTURE DEVELOPMENT

SAPANGAR BAY OIL TERMINAL JETTY EXTENSION Facilities No.Berth Length (M) Jetty Structure Existing Depth (M) Max Vessel Size (DWT Main berth 1 82.32 12 30,000 Inner berth 1 45.73 12 1,000 Future Main berth 1 30 12 60,000 Inner Berth 1 30 12 5,000 FUTURE DEVELOPMENT

ACHIEVING GREEN PORT STATUS Replacement of highmast lighting with energy-saving LEDs Electrification of cargo handling equipment (RTGs) Renewable energy generation (solar) Scheduled waste disposal (oils, garbage, ballast water) Port reception facilities (vessels to plug on port electricity when berthed)

EDI data submission (reduce time for manual submission) Smartrail RTG integration to improve efficiency VMT/tablet distribution of instruction for efficient info flow Container/truck booking online Vessel Planning Module to optimize CHE moves Realtime monitoring of activities FEATURES OF AUTOSTORE IT SYSTEM (Jan 2017) Online Customer Portal IT System for Port Operation

Going Forward DIVERSIFICATION INTO PORT-RELATED BUSINESSES International Cruise Terminal and Commercial Realty Development

REDEVELOPMENT OF OLD PORT AREA (ex-kk Port)

REDEVELOPMENT OF OLD KK PORT AREA CREATION OF A NEW CITY FOCUS One Jesselton Waterfront Project (7 acres) Jesselton Quay Project (16.25 acres) Proposed International Cruise Terminal Kota Kinabalu Convention City Sabah International Convention Centre

Towards a better CBD

The Shanghai experience of a Japanese Architect gave rise to a unique composition of modern towers juxtaposed against classic Borneo retail street fronts.

Like all famous port cities of the world, Jesselton Quay is about giving back to the people of KK, their original waterfront, refreshed brimming with life and activity.

Jesselton Quay Masterplan Concept The best scheme was done by a Japanese design firm (Matani Studio) out of Shanghai.

JQ Central 25-storey Commercial Suites Tropical-themed BeachClub City Pads 37 Retail Shoppes 25-storey i-offices

Cruise Jetty Condominium Serviced Suites Cruise Jetty BoardWalk Mall Serviced / Hotel Suites Suria Corporate Office & Retail Ferry Ticketing Local Ferry Jetty

Suria s Proposed Redevelopment Projects on Old KK Port Area Jesselton Quay (16.25 acres) One Jesselton Waterfront (7 acres) International Cruise Terminal (28.9 acres)

Cruise Ships Calling at KK Port (since 2008) No. Name of Cruise Ship Length Over All (LOA) GRT (Gross Registered Tonnage) No. Name of Cruise Ship Length Over All (LOA) GRT (Gross Registered Tonnage) 1 AEGEAN ODYSSEY - - 21 MC COLUMBUS 144.1 15,067 2 AMADEA 192.8 29,008 22 MINERVA 135.1 12,449 3 ARCADIA 285.1 83,781 23 NAUTICA 180.5 30,277 4 ARTEMIS 230.6 44,588 24 OCEANIC 238 38,772 5 ATHENA 160.1 16,144 25 OCEAN DREAM - - 6 BALMORAL 218.5 19,985 26 ORION II 88.1 4,077 7 BLACK WATCH 205.5 28,668 27 PACIFIC PRINCESS 180.5 30,227 8 CLIPPER ODYSSEY 103 5,218 28 PACIFIC SUN 223.4 47,546 9 COSTA ALLEGRA 188 28,597 29 PACIFIC VENUS 183.4 26,594 10 COSTA CLASSICA 220.6 52,926 30 QUEEN ELIZABETH 293.8 90,901 11 COSTA ROMANTICA 220.6 53,049 31 QUEEN VICTORIA 294 89,500 12 C COLUMBUS 144.1 15,067 32 SEABOURN ODYSSEY 198.2 32,346 13 DAWN PRINCESS 261.3 77,441 33 SEABOURN SPIRIT 133 9,975 14 DELPHIN VOYAGER 174 23,287 34 SEA PRINCESS 261.3 77,499 15 DIAMOND PRINCESS 288.3 115,875 35 SILVER WHISPER 186 28,258 16 DISCOVERY 168.7 20,216 36 SPIRIT OF ADVENTURE 139.9 9,570 17 EUROPA 198.6 28,890 37 SUN PRINCESS 261.3 77,441 18 FUNCHAL 154.6 9,563 38 SUPER STAR GEMINI 164 19,093 19 HANSEATIC 122.8 8,378 39 VOLENDAM 237.9 61,214 20 LEGEND OF THE SEAS - -

Queen Elizabeth Queen Elizabeth: second largest ship constructed by Lunard Line; entered into service in 2010 and has a capacity of ~ 2,092 passengers

Sapphire Princess Sapphire Princess: one of the world s largest cruise ships owned by Princess Cruises; entered into service in 2004 and has a capacity of ~ 2,670 passengers

Dawn Princess Dawn Princess: A sister cruise to Sun Princess and Sea Princess; operated by Princess Cruises; entered into service in 1997 and has a capacity of ~ 1,990 passengers

SuperStar Aquarius Home Port Call at KK Port for two seasons (2013-2015) SuperStar Aquarius: One of the ships operated by Star Cruises; entered into service in 1993 and has a capacity of ~ 1,500 passengers

Proposed International Cruise Terminal amidst Jesselton Waterfront City Mixed Development One Jesselton Waterfront & Ferry Terminal (7 acres) Jesselton Quay (16.25 acres) Proposed International Cruise Terminal Kota Kinabalu Convention City Sabah International Convention Centre

Integration of Green Features in Redevelopments for Sustainability Intelligent building Glass building structures (to promote natural lighting) Dedicated boardwalk and pedestrian walk (to reduce vehicular access) Green transport Low-rise, low-density buildings Least destructive reclamation method Minimum of 10% greens Solar energy generation District cooling system

Green Initiatives in line with Eco-Tourism Sabah is blessed with rich and exotic natural environments Kinabalu Park (UNESCO World Heritage Site) Tunku Abdul Rahman Park Sipadan Island Sepilok Sanctuary Danum Valley Maliau Basin Planning of new developments to incorporate green initiatives to preserve Sabah s natures

Integration of Green Initiatives Least destructive Boardwalk & dedicated pedestrian walk Green transport Low-rise, low-density M reclamation method for Sustainability 10% greens Glass building structures District cooling system Building with open space Intelligent building Solar energy generation

Gaya Island, Tunku Abdul Rahman Park Green Initiatives in line with Eco-Tourism Sabah is blessed with rich and exotic natural Proboscis Monkey, Sepilok Sanctuary environments Planning of new developments to incorporate green initiatives to preserve Sabah s natures Danum Valley Mount Kinabalu

CORPORATE SOCIAL RESPONSIBILITY

Marine & Environmental CSR Initiatives Mangrove Restoration and Rehabilitation Program (2012) Aims to create awareness on mangroves contributions to improving coastal ecosystems 300 saplings planted Funded two Marine Conservation Projects by Borneo Marine Research Centre UMS (2013) "Ecological connectivity of coral reef with sea grass and mangrove ecosystems" "Monitoring of reef status and determining the feasibility of coral restoration in Sapangar Bay Funded Marine Research Foundation s project titled Research & Conservation of Marine Turtles Through Laparoscopy Studies At Mantanani (2014) Funded Marine Conservation Study by BMRI-UMS titled Status of Heavy Metals Pollution in Coastal Sediment of Sapangar Port and Kota Kinabalu Port (2016)

Mangrove Restoration and Rehabilitation Planting and Adoption of Coral Colony Research and Conservation of Marine Turtles Water Sampling for Heavy Metal Detection