It’s all systems go at POIC Lahad Datu
LAHAD DATU: With the completion of the federal-funded 50,000 TEU container terminal at the Lahad Datu palm oil industrial cluster (or POIC Lahad Datu), it’s all systems go at the governmentowned industrial park, not just for the oil palm industry, but also Sabah’s east coast as a logistics and manufacturing hub for BIMPEAGA.
The readiness of POIC Lahad Datu, set up in 2005, augurs well for the Southern Region Development Plan revealed by Chief Minister Tan Sri Musa Haji Aman recently.
With all the key port and land infrastructure in place, virtually any oil palm-related manufacturing, especially high value added products can now be developed in POIC Lahad Datu.
Lahad Datu is geographically located in the centre of Sabah’s oil palm belt makes it more compelling for POIC to lead the downstream development of the oil palm industry in Sabah.
“The lack of facilities to handle containerised cargo had been a stumbling block for POIC, especially in attracting investments in high-value biochemical and oleochemical sectors. We are now well and truly ready,” said Datuk Nasrun Datu Mansur, chairman of POIC Lahad Datu.
There are two palm oil refineries operating in POIC Lahad Datu. A third refinery, Platinum Performance Chem Sdn Bhd, is in the process of changing its refinery business to produce speciality chemicals and advance materials involving graphene.
In addition, Sabah’s first oleochemical plant is also located there. This plant uses industrial grade palm oil extracted from palm oil processing waste to make stearic acid and soap noodles. A second oleochemical plant is in the offing.
He said that aside from having developed industrial land, ports and industrial support infrastructure at POIC Lahad Datu, the commitment of the state and federal governments towards developing the oil palm industry is clearly demonstrated in the oil palm NKEA (National Key Economic Area) under the Economic Transformation Programme and the National Biomass Strategy where POIC is a development priority. The Sabah Biomass Strategy was launched by the Prime Minister on February 25, 2016.
“Even before the advent of these national strategies, POIC has in its mission and vision statements identified what it wants to do to take the industry forward,” said Nasrun.
“We identified what was needed especially in specialised infrastructure such as the justcompleted container port, the pipe rack that connects factories to the oil terminal, tank farm, etc.
“To enable a take-off of biomass industry, we have resolved the aggregation problem by setting up our own collection centres near palm oil mills by working with My Clean Energy Sdn Bhd, a company that specialises in biomass supply.
“As POIC Lahad Datu grows, we foresee the need for investors to pool their resources for common good by setting up the POIC Emergency Mutual Aid, or PEMA, with help from the Department of Fire and Rescue. PEMA is a sort of first responders to emergencies comprising members from participating companies.”
On park security, Nasrun said POIC had a 35-member auxiliary police unit patrolling the park round-the-clock.
“I am very impressed with what has been done in POIC Lahad Datu and the future it holds for not only the people here, but for the whole of Sabah’s industrialisation.
“About 1,000 jobs have been created so far in POIC Lahad Datu and most of them are from the area and all this is made possible by the vision of the State government with the support of the Federal government.”
On the container terminal which is the only one on the East Coast of Sabah with ship-to-shore cranes, Nasrun said it had earned POIC port the distinction as the only industrial park that has, within itself, a comprehensive set of port infrastructure.
Since 2013, the bulk terminal, the oil terminal and barge landing point have been serving the needs of POIC’s investors.
In fact in 2017, POIC ports had handled up to one million metric tonnes of cargo. Among the happy customers are a cluster of 10 operating fertiliser factories with an annual capacity of more than one million tonnes of fertilisers per annum, making them the biggest fertiliser cluster in the country.
The completeness and readiness of POIC Lahad Datu is the result of a state vision to deepen the oil palm industry in Sabah by encouraging oil palm downstream processing industries including unlocking the huge palm biomass potentials. The idea leverages on the fact that Sabah, with 1.6 million hectares of some of the most productive oil palm plantations in Malaysia, is the biggest palm oil producing state in the country.
“The sector is estimated to have an economic potential of up to RM200 billion per annum if we can somehow retain all our palm oil for very high value-adding especially bio-chemicals. This can then anchor the development of POIC Lahad Datu as a logistics hub of the BIMP-EAGA region.
“With potential crude oil finds off Lahad Datu and Sandakan, it is not far-fetched to envision Lahad Datu becoming an industrial city in the next 20-25 years.”
“POIC has reached a stage where it now has the infrastructure and geographical advantage in relation to raw materials to effect a significant industrial take-off.
“The East Coast of Sabah is likely to witness the most dynamic growth of all the three main economic sectors of agriculture, manufacturing and services (through tourism). Apart from oil palm, there is already substantial aquaculture in particular fish, seaweed and prawns. Tourism is also thriving along the East Coast of Sabah,” said Nasrun.