KUALA LUMPUR (Nov 4): The government has not provided any policy decision in relation to the proposed Kuala Linggi International Port (KLIP) near the Melaka-Negeri Sembilan border, said Transport Minister Anthony Loke.

"The proposed development of the KLIP is a port development initiative by the private sector, and the government at this time has not undertaken any policy decision in relation with the proposal," Loke told the Dewan Rakyat today.

"Based on the main development plan, the KLIP will function as an industry port, which, among others, will serve as a hub with bunkering activity and the port of refuge for trading vessels going through the Straits of Melaka," Loke said.

He added that should the project be approved, its main focus will be to cater to the oil and gas industry.

"Because of its close proximity to Port Klang and Tanjung Pelepas port, the Ministry of Transport has stated that it should not serve as a container port," he added.

He, however, clarified that the proposal is being scrutinized by the National Physical Planning Council (NPPC) from Oct 24.

Among others, the review proposed that the project developer increase the distance from the port and the Negeri Sembilan maritime border, and reduce the reclaimed land on the Melaka side.

The project will also need to include an Economic Impact Report to prove its economic benefit exceeds social and environmental costs, and take into consideration the National Port Strategy study that was conducted by the Prime Minister's Department and the World Bank Group in 2016.

Also to be taken into account is the location of the source of land to conduct the reclamation, among others, said Loke.

"The government is ready to support the project, but it depends on the developer whether to act on the requirements underlined by the NPPC," he said.

There have been numerous reports previously about the KLIP, which was gazetted in 2006 with construction initially scheduled to begin in 2017.

According to the reports, the project — an expansion from the existing Kuala Linggi Port — was to be undertaken by TAG Marine Sdn Bhd alongside investors from China with an estimated cost of RM12.5 billion.

The implementation of the project faced hiccups because of a dispute between Melaka and Negeri Sembilan revolving around the small Batu Berjambul island at the border of the two states.