MALAYSIAN firms are at the forefront to get a controlling stake in Sudan's
national shipping company which is to be privatised possibly by end of
next year.

 
Halim Mazmin Bhd, a leading mainline operator, has emerged as the top
local candidate to own up to 75 per cent stake in Sudan Shipping Line,
which its Government expects to privatise within two years.

 
And as the Sudan Government looks for increased Malaysian participation
to help build its economy, national car manufacturer Proton seems set to
become a major investor there with a possible assembly plant.

  
"Our national shipping line is going for privatisation very soon. We
have told Halim Mazmin about this prospect," said Sudan's Finance Minister
Abdul Rahim Mahmoud Hamdi.

  
"We have started preparations to privatise it. (Halim Mazmin) is most
welcomed to buy into this company," he told NST Business in Kuala Lumpur
recently.

  
Abdul Rahim said Halim Mazmin had been asked to help the Government do
"a fair valuation" on the privatisation, which he described as at a very
advanced stage.

  
"In terms of the equity, we are willing to give up to 75 per cent to
foreign partners.

 
"It's a Government policy even for foreign companies. We are willing to
surrender the management to foreign companies."

 
Comments from Halim Mazmin were not immediately available.

 
Halim Mazmin and Sudan Shipping Line recently made another move to
strengthen the Malaysia-Sudan relationship.

 
During Abdul Rahim's three-day working visit to Kuala Lumpur a fortnight
ago, the companies stamped a new deal to increase freight frequency
between the two countries.

 
Currently, the frequency is once every 15 days.

 
With more freight frequencies, Sudan can look forward to exporting more
of its meat and livestock products while Malaysia can provide it with more
infrastructure services.

 
Abdul Rahim said Proton might soon join the Korean, British and French
automakers who have established plants in Khartoum, Sudan's capital,
producing cars and heavy vehicles for domestic and regional markets.
"Proton has expressed a strong desire to set up an assembly plant as
soon as possible. It's just a matter of time," he said.

 
"I see the redoubling of the interest of Malaysian investors in our
country."

 
Petronas, Muhibbah Engineering (M) Bhd, Advance Synergy Bhd, Malaysian
Mining Corporation Bhd, Ranhill Bhd and Dectra Sdn Bhd lead the Malaysian
charge in Sudan, Africa's biggest country located in the northeast corner
of the continent.

 
Sudan's ambassador last year said Petronas had triggered an
international interest in the country's economy when the oil company first
negotiated the petroleum contract in the early 1990s (and was awarded the
concession in 1996).

 
With Petronas' expertise, the country has emerged as an oil power with
the capacity to produce 200,000 barrels a day.

 
Abdul Rahim said Sudan was now as strategic as other countries in Africa
and in the Arab world because it had joined the Arab Free Trade zone which
will boast significantly low tariffs for many products by 2005.

 
"All the Arab countries have seen customs deductions being lowered to 50
per cent. In 2005, it may even be lowered by 100 per cent," he said.