Proposed bitumen facilities in Sarawak timely for Pan Borneo
KUCHING: Senari Synergy Sdn Bhd (Senari Synergy) and Kemaman Bitumen Company Sdn Bhd’s ( Kemaman Bitumen Company) proposed facility for the import, storage and distribution of bitumen and bitumen related products in Sarawak wil l facilitate uninterrupted and timely delivery of bitumen for the development of the Pan Borneo Highway.
A memo ra n d um of understanding ( MOU) was signed yesterday between the two companies yesterday in respect of the collaboration for the import, storage and distribution of bitumen and bitumen related products in the state.
The ceremony was witnessed by Datuk Amar Awang Tengah Ali Hassan, Minister of Industrial and Entrepereneur Development, Trade and Investment who is also the Second Minister of Resource Planning and Environment. He was accompanied by Senari Synergy chairman Tan Sri Datuk Amar Bujang Mohd Noor and Chaiwat Srivalwat, chairman of Kemaman Bitumen Company.
Awang Tengah commended Senari Synergy for driving the initiative to construct its own bitumen facilities together with Kemaman Bitumen Company, and for recognising the opportunities made available from the continued economic progress of the state.
“The RM30 million investment in bitumen production is very timely as Sarawak is developing more infrastructures to enhance our connectivity and open more areas for economic development,” Awang Tengah said in his speech, noting that bitumen is one of the major component in the construction of roads.
One of the biggest single projects undertaken by the government is the construction of the RM16 billion Pan Borneo Highway which is already in progress, he added.
He further highlighted that the state is also placing emphasis on rural transformation and this is the main agenda of the government, led by Chief Minister Datuk Patinggi Tan Sri Adenan Satem’s ‘ Go rural’ policy to transform the rural areas.
“And one of the components in transforming the rural areas is to put in place all the necessary infrastructure to improve the connectivity. All this infrastructure devleopment will definitely create huge demand for bitumen,” he stressed on.
Meanwhile, Senari Synergy managing director Jef r i Ahmad Tambi announced in his welcoming remarks that the proposed facility will be developed on approximately two acres of land within the Senari Synergy Industrial Complex.
The proposed facility will comprise of a 4,000 metric tonne tank, a 500 metric tonne holding tank, a loading gantry and other related infrastructure and amenities.
“The signing of this MOU is a reflection of our support towards Sarawak State Government’s aspiration to promote more local companies’ involvement, part icularly state related companies, in the oil and gas and its associated industries,” he said.
“We believe Senari Synergy’s active participation is becoming more relevant and critical at this juncture with the proposed development of Pan Borneo Highway project where timely and uninterrupted bitumen supply is of utmost importance.”
Jefri pointed out that with this investment, there will certainly be more economic activities at Senari Synergy’s oil and gas jetty and simultaenously will also help in optimising their land use at Senari Synergy Industrial Complex.
“It is hoped that our industrial complex will ultimately be the growth node or hub for midstream oil and gas sector in the southern region of Sarawak. Concurrently, we are also working on enhancing and upgrading certain facilities within the complex that will increase the ef ficiency and delivery of our exisitng and new business partners,” he said.
Meanwhile, Somchit Sertthin, chief executive officer (CEO) of Tipco Asphalt Public Company Limited the parent company of Kemaman Bitumen Company, highlighted that this proposed joint venture ( JV) will pave the way for collaboration and cooperation between Kemaman Bitumen Company and Senari Synergy in fulfilling the Sarawak State Government’s aspiration to improve its roads and highway network for the people of Sarawak.
“I do believe this will help spur economic growth and allow for better movement of goods and people,” he said.
“I would like to confirm our commitment towards the people of Sarawak that this JV shall be well positioned to meet the increased bitumen demand and contribute towards making the local road construction industry a more effective and cost efficient one.”
Despite the chal lenging economic environment, Awang Tengah noted that Sarawak continues to receive substantial amounts of foreign direct investment ( FDI) and domestic direct investment ( DDI). In 2014 and 2015, the state received RM9.6 billion and RM11.8 billion worth of investments respectively. In terms of ranking, Sarawak is second behind Johor for both years.