PLANS TO BUILD WORLD’S BIGGEST STS HUB IN JOHOR
KA Petra teaming up with Hutchison Port in US$180m ship-to-ship hub project
KA Petra Sdn Bhd and Hong Kong-based port operator Hutchison Port Holdings Ltd are investing up to US$180 million (RM732.6 million) to set up the world’s biggest “ship-to-ship (STS) hub” in the waters of Johor Baru port.
“Construction of the STS hub is slated for next year. We expect it to complete by the end of 2021,” said KA Petra executive chairman Datuk Shahrul Amirul.
“We’re in talks with banks to raise funds as the initial investment is estimated between US$150 million and US$180 million,”
he added.
The STS hub, to be developed by joint venture company KA Petra STS Hub Sdn Bhd, is touted to trigger a resurgence in the Malaysian maritime sector, create jobs and attract skilled Malaysians.
It will have the capacity to store nine million tonnes of bunker fuel.
The area where the STS hub will be built encompasses 1,133.12ha of waters, 3.5km offshore from Port of Tanjung Pelepas.
The new STS hub will have mooring buoys and “dolphins” to berth tankers.
The usage of dolphins, isolated marine structures for berthing and mooring vessels, will enable mother ships to berth without the need for large piers or docks.
“After two years of talks, KA Petra and Hutchison Port are developing the project on a 70:30 basis,” said Shahrul at the signing of the joint venture here yesterday.
The signing ceremony was witnessed by Prime Minister Tun Dr Mahathir Mohamad, Transport Minister Anthony Loke and Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail.
Shahrul said the STS hub would contribute RM18 billion to Malaysia’s economy annually.
Hutchison Port group managing director Eric Ip said the project would have a positive impact on the maritime sector across the region.
“Given our global port network, we are confident of introducing the many benefits offered in this hub to our global shipping line customers,” said Ip.
“We’re a long-time investor in Malaysia. The STS hub investment in the waters of Johor Baru port will complement our existing investment in Westports,” he added.
Since 2000, Hong Kong tycoon Li Ka Shing-controlled Hutchison Port has been a 30 per cent shareholder in Westports Holdings Bhd.
A check with the Registrar of Companies showed that KA Petra is almost wholly-owned by Datin Lelawati Raffik.
When asked on the company ownership, Shahrul said: “Yes, Lelawati owns the company. That shows how much I love my wife.”
KA Petra is one of four operators licensed by the Transport Ministry to provide STS services to vessels coming into the Port of Tanjung Pelepas in Johor.
Shahrul said the STS hub complements oil storage in Tanjung Bin and refining activities at Pengerang, Johor.
ATT Tanjung Bin Sdn Bhd, a joint venture between MISC Bhd and Vitol, operates a petroleum product storage terminal in Tanjung Bin and has a storage capacity of almost one million cubic metres (m³).
Phase 1 of the Pengerang Deepwater Terminal (PDWT) has a storage capacity of 1.3 million m³ of petroleum products, while Phase 2 has a capacity of 2.1 million m³.
The PDWT is a joint venture between Dialog Group Bhd, Royal Vopak NV and Johor’s State Secretary Inc for Phase 1, and the three parties plus Petroliam Nasional Bhd for Phase 2.