GREEN LIGHT FOR RM2B BUNKER ISLAND
Johor project will put Malaysia on global map as major oil storage and bunker business hub, says minister
JOHOR Port Authority (JPA) has entered into an agreement with Smart Crest Sdn Bhd to develop a RM2 billion integrated oil terminal facility within the Tanjung Pelepas free commercial zone.
The “Bunker Island” project, which is being revived after 17 years, will be built on a 16.18ha reclaimed island in three phases
over four years.
The agreement was signed by JPA chairman Rosnan Fathlal and Smart Crest managing director Cher Lee Kiat.
Transport Minister Anthony Loke Siew Fook said the government would provide assistance to facilitate the project and hoped the project would put Malaysia, specifically Johor, on the global map as a major oil storage and bunker business hub.
With 61 tanks in five tank pits, the oil terminal will have a storage capacity of 1.2 million cu m, handling different types of products.
It will also have two jetties and seven berths, besides capabilities to handle various type of products.
“Malaysia has created a strong foundation for the future. It is thus compelling for the country to attract investments that will contribute significantly to the national economy and increase the value of international trade,” said Loke at the signing ceremony, here, yesterday.
“It is with this over-reaching objective in mind that the government has agreed to the integrated oil terminal project in Johor.”
According to an independent research, global oil storage volume was expected to grow at a compounded annual growth rate of 4.7 per cent from 2016 to 2024, notwithstanding the uncertainties of the global oil market.
The growth of the market is partly driven by downturn in oil prices which resulted in excessive supply, creating high oil storage demand.