The Edge Daily (Malaysia)
Muhibbah Engineering (M) Bhd sees potential for expansion for its international airport concessions in Cambodia, especially the Sihanoukville International Airport, given the high passenger growth rate in the country.
The company are set to benefit from the three airports that will encourage more package tours to Cambodia espcially with its famous historical sites in Siem Reap, fast-growing city in Phnom Penh and seaside attractions in Sihanoukville.
Its group chief financial officer Shirleen Lee Poh Kwee said Phnom Penh and Siem Reap airports posted 15% and 38% growth in passenger numbers last year.
Sihanoukville International Airport, which currently handling private jets only, has the capacity to expand its facilities to cater for larger aircraft given the increasing number of tourists.
“Siem Reap is mostly tourist while Phnom Penh is 85% business with 15% tourism. Sihanoukville is a hybrid of both. The growth for Sihanoukville will be like Siem Reap but may be bigger.
“Both airports (Siem Reap and Phnom Penh) are also similar contributors to revenue but Siem Reap is growing faster,” she told a group of visiting Malaysian journalists after the official opening of the Siem Reap International Airport, Cambodia.
Muhibbah's interest in the three airports are through its 30% stake in Societe Concessionaire des Aeroports (SCA), which operates the Phnom Penh and Siem Reap airports under a build-operate-transfer concession with the Cambodian government until 2040. The majority 70% stake is held by France-based Vinci Group.
Lee said the development cost for Sihanoukville airport, which is expected to begin operations within two years to cater to smaller international flights, was expected to cost between RM55 million and RM73 million.
“Once it is developed to handle Boeing 737 aircraft, it can begin generating revenue because of flights from overseas such as Malaysia, Vietnam, and Thailand. Right now it’s only big enough for small, private jets,” she added.
Lee said Muhibbah was confident of being chosen by SCA to do the expansion work given its good track record at both the Phnom Penh and Siem Reap airports. She also would not rule out doing other projects around the region.
She said: “Replenishing order book in Cambodia is not very difficult for us. We have Muhibbah Engineering Cambodia, which has done infrastructure projects like roads and the US Embassy in Phnom Penh and we are quite famous in Cambodia as one of the first construction companies from Malaysia.”
Lee said the airport concessions were part of the 70% overseas contribution to Muhibbah's revenue in its last financial year.
The company are set to benefit from the three airports that will encourage more package tours to Cambodia espcially with its famous historical sites in Siem Reap, fast-growing city in Phnom Penh and seaside attractions in Sihanoukville.
Its group chief financial officer Shirleen Lee Poh Kwee said Phnom Penh and Siem Reap airports posted 15% and 38% growth in passenger numbers last year.
Sihanoukville International Airport, which currently handling private jets only, has the capacity to expand its facilities to cater for larger aircraft given the increasing number of tourists.
“Siem Reap is mostly tourist while Phnom Penh is 85% business with 15% tourism. Sihanoukville is a hybrid of both. The growth for Sihanoukville will be like Siem Reap but may be bigger.
“Both airports (Siem Reap and Phnom Penh) are also similar contributors to revenue but Siem Reap is growing faster,” she told a group of visiting Malaysian journalists after the official opening of the Siem Reap International Airport, Cambodia.
Muhibbah's interest in the three airports are through its 30% stake in Societe Concessionaire des Aeroports (SCA), which operates the Phnom Penh and Siem Reap airports under a build-operate-transfer concession with the Cambodian government until 2040. The majority 70% stake is held by France-based Vinci Group.
Lee said the development cost for Sihanoukville airport, which is expected to begin operations within two years to cater to smaller international flights, was expected to cost between RM55 million and RM73 million.
“Once it is developed to handle Boeing 737 aircraft, it can begin generating revenue because of flights from overseas such as Malaysia, Vietnam, and Thailand. Right now it’s only big enough for small, private jets,” she added.
Lee said Muhibbah was confident of being chosen by SCA to do the expansion work given its good track record at both the Phnom Penh and Siem Reap airports. She also would not rule out doing other projects around the region.
She said: “Replenishing order book in Cambodia is not very difficult for us. We have Muhibbah Engineering Cambodia, which has done infrastructure projects like roads and the US Embassy in Phnom Penh and we are quite famous in Cambodia as one of the first construction companies from Malaysia.”
Lee said the airport concessions were part of the 70% overseas contribution to Muhibbah's revenue in its last financial year.
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