BBSB inks deals with two companies
BINTULU: Biport Bulkers Sdn Bhd (BBSB), a wholly owned company of Bintulu Port Holdings Bhd (BPHB) inked supplementary and contract agreements with two companies at Wisma Kontena in Tanjung Kidurong here yesterday.
The first signing was on the supplementary agreement for a bulking installation facilities with Bintulu Edible Oils Sdn Bhd ( BEO).
The supplementary agreement was signed by Bintulu Port group chief executive officer Dato Medan Abdullah and BBSB by its chief operating officer Shamsuddin Ismail. BEO was represented by its general manager Lu Khai Ing and senior accounts and administration manager Sia Ting Chang.
The signing of the supplementary agreement reinforces the commitment of BEO to continue utilising BBSB storage and handling facilities and services
Prior to the establishment of BBSB, BEO was operating at Bintulu Port general cargo wharf, and in 2008 they shifted all their shipping operations to BBSB and made full use of BBSB storage facilities and services.
for the movements of their edible oils.
“Prior to the establishment of BBSB, BEO was operating at Bintulu Port general cargo wharf, and in 2008 they shifted all their shipping operations to BBSB and made full use of BBSB storage facilities and services,” said Medan.
Under the agreement, BEO commits to guarantee a minimum throughput of 1.6 million tonnes in 2018 and up to 1.82 million tonnes in 2023 to BBSB.
Medan said the agreement augured well for BBSB not only that it would provide a stable revenue for BBSB for the next five years, but most importantly it was a sign of confidence and approval by Wilmar Group of Companies in BBSB’s management.
“BEO is the main anchor to BBSB business. The company contributes nearly 50 per cent of BBSB’s annual throughput in 2016 while the remaining 50 per cent was shared by three other refi neries making BEO as BBSB’s biggest trading partner,” he added.
BEO, which comes under PGEO Group Sdn Bhd, is wholly owned by Wilmar International Limited, one of Asia’s largest integrated agribusiness groups.
Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Stock Exchange.
BEO’s main activity is the manufacturing of edible oils from crude palm oil and animal feed from palm kernel.
BEO processes close to two million metric tonnes of edible oils annually and most of it is exported to China, India, United States, the Netherlands, EU countries, Middle East, Pakistan, Japan, Philippines, New Zealand and Australia, through BBSB.
BBSB was established in 2003 to manage and operate a vegetable oil bulking terminal at Bintulu Port.
To- date, its has 85 storage tanks with a total tank capacity of 154,600 metric tonnes and a dedicated jetty that can accommodate three vessels at any one time. In 2016, BBSB handled a total of 3.65 million tonnes of palm oil products and is expected to handle 4.0 million tonnes this year.
The second signing ceremony was a contract agreement with Redha Infaq Sdn Bhd ( RISB).
RISB was represented by its managing director Merudi Jabah and director Sharifah Zuraini Wan Abu Bakar.
Theagreementwasforthedesign, fabrication and construction of four bulking pipelines valued at RM7.8 million. The project will take eight months to complete.
This project is one of BBSB main capex for this year in line with BBSB’s commitment to provide adequate bulking facilities for its long-term customers.
The additional pipelines not only will benefit a new refinery which is expected to use BBSB storage facilities and services in the third quarter of 2017, but also the existing refineries by ensuring uninterrupted simultaneous transfer of oils from all the refi neries to BBSB terminal.
“The installation of the additional pipelines is partly meant to cater for a new refi nery, Rimbunan Hijau Borneo Edible Oils Sdn Bhd, which is expected to start operations middle of this month,” said Medan.
With the new refinery, BBSB will provide storage facilities and handling services to five companies whose refineries are connected to BBSB terminal through a network of pipelines.
With the completion of this project by year- end, Medan said BBSB would be providing 12 bulking pipelines for use by the five refi neries.
The award of the contract to RISB, he added, was significant as a testimony of BBSB’s commitment in ensuring and encouraging Sarawak Bumiputera companies’ participation in its development projects.
RISB is a Bumiputera engineering company based in Bintulu and is actively involved in engineering works and supplies. Its clients include MLNG, Sarawak History Sdn Bhd and BPSB.
BPSB chief operating officer Omar Salleh and Samalaju Industrial Port Sdn Bhd chief operating officer Matshalleh Mohd Etli were also present at the signing ceremony.
Dato Medan Abdullah, Bintulu Port group chief executive officer