Malaysia-listed oil trading and bunkering firm Straits Inter Logistics Berhad (SIL) on Friday (31 January) said it is planning to start a new company, TopCo, to acquire 51% of Megah Port Management Sdn. Bhd. (MPMSB) for MYR 5.1 million (USD 1.24 million) upon shareholder approval.
The remaining 49% of MPMSB will be owned by LPM Holdings Sdn. Bhd., a subsidiary of Sailion Shipping Sdn Bhd.
MPMSB will function as the operating company to carry out Port Management Services at Labuan Port from 1 April 2020 onwards.
SIL noted its oil trading and oil bunkering services segment represented approximately 99.9%, and 100.0% of the Group’s total revenue in the respective financial years of 2017 and 2018.
“As the Group’s financial performance over the financial years under review has mainly relied on a single business segment, i.e. oil trading and bunkering services, the Group intends to expand its Existing Business to include Port Management Services to diversify its revenue and earnings through the Acceptance of LOA,” it stated.
“The Acceptance of LOA serves as an opportunity for the Group to venture into Port Management Services, which the Board deems that the business activities are complementary to the Existing Business.
“The Port Management Services will involve the provision of services, which include, but are not limited to, container operations, break bulk (warehouse/ container freight station/ open yard), berthing and mooring, harbor tug services, stevedoring, bunkering, ship chandler to container and conventional vessels such as bulk carrier, general cargo ship, tanker, car carrier and fishing vessel operators.”
The Board at SIL expects net profit attributable to the port management business segment may contribute more than 25.0% of the total net profit of Straits Group in the financial years moving forward.
SIL on 24 January accepted Labuan Port Authority’s Letter of Award dated 20 January 2020 for the operation and facility management of Labuan Liberty Terminal in the Federal Territory of Labuan.
Photo credit: Straits Inter Logistics
Published: 3 February, 2020
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