Manifold Times was present at the signing ceremony between Straits Inter Logistics Berhad and Lumut Maritime Terminal Sdn Bhd in Malaysia on Tuesday:
Tumpuan Megah Development Sdn Bhd (TMD), the bunkering subsidiary of Malaysia-listed Straits Inter Logistics Berhad (Straits), on Tuesday (1 October) entered into a fuel bunkering services agreement with Lumut Maritime Terminal Sdn Bhd (LMTSB) – the operator of Lumut port which handles over 500 ships per annum.
The agreement, which has a contract period of one year commencing 1 October, with option for renewal, will oversee the establishment of “Pit-Stop Bunker Hub @ Lumut” a bunkering terminal set up for the business venture.
LMTSB has agreed to appoint TMD with the exclusive right to operate, manage and provide bunker services located at or within Lumut Port limit including but not limited to jetties/ wharfs, anchorage area and the designated Pit-stop Bunker area.
TMD has in turn obtained the appropriate Petroleum Development Act 1974 (PDA) licences from the Ministry of Domestic Trade and Customer Affairs (KPDNHEP) to commence marine fuel delivery services at Lumut.
“TMD is currently operating its business in eight ports in Malaysia,” said Straits Group Managing Director Dato' Sri Ho Kam Choy.
“By entering into this Agreement with LMTSB, TMD hopes to establish a base in bunkering business in Lumut and subsequently to further enlarge its bunkering business in the western region of Peninsular Malaysia.”
According to Dato' Sri Ho, the tie-up with LMTSB is part of Strait’s overall strategy to establish collaboration with strategic ports in Malaysia to bunker for vessels within their port limits.
Straits expects the new venture to contribute positively to the revenue and future earnings of the Straits Group from the financial year ending December 31, 2019 onwards.
“We believe that the opportunity to collaborate with LMTSB will bring forth new dimensions to both parties’ infrastructures which will allow both parties to tap the vast potential in the bunkering industry,” he adds.
“The tie-up with LMTSB definitely marks an important milestone for Straits for its expansion in the bunkering business.”
At present, TMD operates in eight ports in Malaysia, which include, Pasir Gudang Port, Tanjung Pelepas Port, Johor Bahru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port, Labuan Port and Miri Port, all of which are licenced under PDA Licences for its bunkering services.
LMTSB owns and operates the Lumut Port at Kg Acheh, Lumut and has been in operation for more than 20 years. In 2002, Lumut Port began to operate and manage Lekir Bulk Terminal. Strategically located off the Straits of Malacca on the west coast of Peninsular Malaysia in Perak, the Port was established as a State Port and a catalyst for economic growth, development and industrialisation of Perak and the nation in general.
“This valuable tie-up with Maritime Terminal also fits well into the Groups strategy to established collaborations with strategic ports throughout Malaysia to bunker for vessels within their port limit,” said Dato' Sri Ho.
“We are excited and stand ready to tap the huge bunkering market potential of vessels sailing through the Straits of Malacca together with our valued partner, Lumut Maritime Terminal Sdn Bhd.
“Straits and Tumpuan Megah with its enlarged network and infrastructure is currently at the forefront to expand its geographical footprint and today’s collaboration with Lumut Maritime Terminal will bring together enhanced value creation by tapping on both parties infrastructure to exploit the vast bunkering potential in Straits of Malacca.”
A coastal town in the rapidly-developing Manjung district of Perak, Lumut is strategically located off the Straits of Malacca, which is a crucial shipping route for global trade.
The establishment of its very-own bunkering terminal at Lumut Port offers Straits a well-positioned location to service more than 100,000 vessels passing through the Straits of Malacca annually, it adds.
Ships plying through Straits of Malacca can now save the time, deviation cost as well as port charges that were incurred previously just for calling into a port for bunkering services, following the launch of Straits' bunkering terminal at the Lumut Port.
Straits' fuel bunkering terminal is named Pit-Stop Bunker Hub @ Lumut for its quick, reliable and efficient bunkering services.
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Photo credit: Straits Inter Logistics
Published: 1 October, 2019
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