SILB TO STUDY SABAH POTENTIAL
State is ideally located on shipping route, says group managing director
STRAITS Inter Logistics Bhd (SILB) will venture into Sabah if the state can offer viable business options, especially for bunkering services.
Group managing director Datuk Seri Ho Kam Choy said Sabah is well-positioned to be a gateway for vessels plying the Far East, Papua New Guinea, Solomon Islands, Australia and New Zealand.
“It is ideally located along the route and has the potential to be a regional bunkering hub,” he told the New Straits Times in response to a statement by CMA CGM Malaysia Sdn Bhd managing director John Lim that Sabah is not on the main shipping route.
Lim also said there is an urgent need to make Sabah attractive to vessel owners if it aspires to be a shipping hub for the Far East.
Meanwhile, Ho said it would take time for Sabah to be a regional bunkering hub.
“We will look into it and study the traffic along this route. Currently, our vessels are occupied in different ports. We will consider purchasing more vessels if we can justify a business opportunity in Sabah,” he said when asked if SILB plans to set up a bunkering business unit in Sabah.
SILB is engaged in oil trading and fuel bunkering services and investment holding activities.
Oil bunkering services involve providing marine gas oil and marine fuel oil for vessels, such as oil tankers, container and cargo vessels and cruise ships.
Ho said Singapore is currently the world’s largest bunkering hub, with sales of 49.8 million tonnes of fuel worth US$20 billion (RM83.3 billion) last year.
“There is a huge opportunity and Malaysia should capture some of the value from Singapore’s bunkering industry.
“There is room for the Malaysian bunkering industry to grow due to our strategic location, size and number of ports.”
Ho said SILB would remain focused on its current business of providing premium products, efficient services and competitive prices to capture more market share.
He said it operates at 10 ports in Malaysia through its 55 per centowned Tumpuan Megah Development Sdn Bhd (TMD).
They are Lumut Port, Pasir Gudang Port, Bintulu Port, Port of Tanjung Pelepas, Johor Baru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port, Labuan Port and Miri Port.
“We have an enlarged fleet of 11 vessels with a total carrying capacity of 22 million litres. We will continue to expand and look for areas with high demand for marine oil consumption.”
Ho said TMD recently kicked off its bunkering operations at Lumut Port.
A bunkering anchorage area called “Pit-Stop Bunker Hub@Lumut” was set up after TMD signed a fuel bunkering services agreement with Lumut Port operator Lumut Maritime Terminal Sdn Bhd on Oct 1 .
On April 23, SLIB incorporated a 51 per cent subsidiary in Singapore called Straits Marine Services Pte Ltd to provide vessel and marine management services.
It commenced operations in July.
Ho said Straits Marine was set up to mainly manage its own and third-party vessels.
“We also aim to provide marine surveyor services through our partner. The intended principal activity of the new company is to provide ship management services.
“We think that it would be more beneficial for SILB to set up its own ship management services division under the direct supervision of our captain, which can ensure that the vessels are well maintained and the cost is kept at a competitive level.
“We are moving into fuel oil, from having only marine gas oil, which will give our customers more choices.
“We can supply to all kinds of vessels now. We can also control our cost better as we manage our own ships,” he added.