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70% of Malaysia’s MGO bunker volume ‘supplied by illegal operators’

31 Oct 2018

Seventy percent of Malaysia’s marine gas oil (MGO) bunker sales volume is “supplied by illegal operators”, Datuk Seri Ho Kam Choy, the Managing Director of Kuala Lumpur-based bunkering firm Straits Inter Logistics Bhd, told The Edge in a recent interview.

“You will be shocked to know that 70% is being supplied by illegal operators,” notes Datuk Seri Ho.

Datuk Seri Ho suggests agencies responsible for administrative and enforcement processes in Malaysia, such as the Marine Police and Malaysia Maritime Enforcement Agency (APMM), have lately improved patrol operations to target illegal bunkering operations.

Two vessels, a tanker and a fishing vessel, were detained by APMM in September; the vessel owners and operators are expected to be charged at a Malaysia court, he points out.

Moving forward, Datuk Seri Ho expects Straits Inter Logistics to increase its MGO bunker sales volume as more shipowners and operators become aware of illegal Malaysian operators being charged.

“Awareness is catching on as more companies are coming to us,” he states.

“Apart from worries that enforcement action will be taken against them, a lot of the owners also realise that better quality oil will help save cost in the longer term as the vessels will last longer. Poor quality oil will corrode the engine.”

Published: 31 October, 2018

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