Malaysia: Tumpuan Megah Development enters into bunkering agreement with Bintulu Port
Malaysia marine fuels supplier Tumpuan Megah Development Sdn Bhd (TMD), a subsidiary of Malaysia-listed Straits Inter Logistics Berhad (Straits), on Wednesday (26 June) entered into a Provision of Bunkering Services Agreement with Bintulu Port Sdn Bhd (BPSB).
The agreement period will be for three years, with a renewal option of not more than two years upon mutual agreement.
It allows TMD to manage and provide bunkering services located at the General Cargo Anchorage within Bintulu Port water limit located in Sarawak.
“This tie-up with BPSB marks an important milestone for Straits and in bringing the two companies together for collaboration on bunkering business,” said Straits Group Managing Director Dato' Sri Ho Kam Choy.
“The opportunity to collaborate with Bintulu Port will bring new dimensions to both parties’ infrastructures which will allow both parties to tap the vast potential in the bunkering industry.
“Currently, TMD is operating its business in eight ports in Malaysia, comprising, Pasir Gudang Port, Tanjung Pelepas Port., Kuantan Port, Kuala Terengganu Port, Kemaman Port, Labuan Port, Kota Kinabalu Port, and Miri Port.
“By entering into this Agreement with BPSB, Straits through its subsidiary TMD hopes to establish a base in bunkering business in Bintulu and subsequently further enlarge its bunkering business in East Malaysia.”
Bintulu Port is confident that the relationship built with TMD will not only benefit the port but also provide end users with a bunker facility alternative and ultimately cements the port’s position of becoming one of the bunkering hubs in the region.
“The introduction of fuel bunker services in Bintulu Port waters is part of the Group’s initiatives to enhance users’ experience with the launch of its new Group Vision, Mission and Corporate Values towards becoming a World Class Port Operator and expanding its revenue streams,” adds Bintulu Port Holdings Berhad Group Chief Executive Officer Dato Mohammad Medan bin Abdullah.
“The introduction of such services in Bintulu Port is befitting given the strategic location of the port to potential users spanning various industries plying through Bintulu waters.”
BPSB is in the business to operate, maintain, manage and provide operational facilities and services of the Port undertakings within the Bintulu Port area. BPSB is a subsidiary of Bintulu Port Holdings Berhad, a Bursa Malaysia listed company that is primarily involved in provision of port services, storage and bulking services.
Straits Inter Logistics Berhad is principally engaged in oil trading and oil bunkering services and investment holding activities. Its oil bunkering services involve provision of refuelling marine gas oil and marine fuel oil through vessels to other ships and ocean faring vessels such as oil tankers, container vessels, cargo vessels and cruise ships.
In its effort to expand its business footprint, Straits had completed its acquisition of 55% equity interest in TMD in September 2018 and 38% equity interest in Banle Energy International Limited in February 2019.
The acquisition of TMD has enlarged Straits’ fleet size from two vessels to nine vessels with a total capacity of 12 million litres, while the Banle acquisition has opened up the gateway for Straits to tap the marine fuel oil trading market in Hong Kong, China and Taiwan.
Related: Malaysia: Straits Inter Logistics post 114% jump in Q1 2019 net profit
Related: Maybank IB Research: ‘Buy’ for bunker firm Straits Inter Logistics
Related: Straits Marine Fuels & Energy to start bunkering ops at Johor
Related: Straits Marine Fuels & Energy to welcome ‘identified parties’ as partner
Related: Straits Inter Logistics makes land logistics expansion
Related: Straits Inter Logistics meeting approves Banle Energy acquisition
Related: Straits Marine Fuels & Energy acquires two bunker tankers
Related: Straits Inter Logistics ends 2018 with 61% profit increase
Photo credit: Manifold Times
Published: 26 June, 2019
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