Kuala Linggi International Port (KLIP) is about to change the seascape on the Malaysian side of the Strait of Malacca.

The port, well known for deepwater anchorage that accommodates storage tankers and vessels conducting ship-to-ship transfers, is moving ahead with the second phase of its development.

Early next year, reclamation works will begin to create a large industrial port on a man-made island between Port Klang in Malaysia and Singapore.

Rival down the strait

The project’s developer, Kuala Lumpur-based TAG Marine, expects the site to become one of the largest bunkering, oil storage and transfer points in the region, where Singapore is already a nearby powerhouse.

When commissioned, KLIP’s liquid product terminal will have capacity to store 1.5m cubic metres of oil products, served by deepwater berths with no draught restrictions.

This terminal will complement the floating storage activities that KLIP is best known for today.

A shipyard capable of handling the world’s largest tankers will be developed concurrently, giving incumbent repair yards in Singapore and China a run for their money.

The ambitious project is the brainchild of TAG and KLIP managing director Datuk Seri Noormustafa Kamal bin Yahya. The former LNG vessel master turned business entrepreneur told TradeWinds his shipping experiences made him realise the Strait of Malacca lacked the services required to support the tanker industry.

“I began developing this area when the authorities designated and gazetted the port limits in 2006 because I had the foresight this would be a good place to be, with hundreds of thousands of ships passing through the strait,” he said.

“My vision as a port operator is to give shipowners all the services that I can in order [to] reduce the cost of their operations. We are building services for which we know there is demand.”

This phase of KLIP’s development is projected to cost MYR 15bn ($3.6bn). Noormustafa said funding for the reclamation works has been secured, and further work will be undertaken in partnership with foreign and Malaysian investors.

Noormustafa revealed he has been approached by a large number of interested parties, with many from China or South Korea. Some have been rejected because they do not have an oil and gas background and are looking at it from the perspective of a construction project.

“I have to choose partners who have synergy with me,” he said. “I don’t want investors to come in and turn around the idea. No way! I’m sorry. I’m the owner, I have my vision. I want to complete my dream.”

He added that the company wants partners who are in the oil, gas and shiprepair businesses and who are committed to building and running a first-class operation.

Big-name customers

“Who are my customers? Euronav, Shell, BP,” he said. “Do you think they want to come if you take shortcuts? If they see you do that, they won’t come to use your port. I’m not stupid. I’m a mariner. I was there on the bridge before, so I know how it needs to be done.

“Now I am a domestic direct investor and people are coming as foreign direct investors. As a responsible investor I must do it right — from the beginning. I won’t put up my money when things are not so.”

The oil storage terminal is only part of the overall KLIP plan.

High up on the priority list is the construction of a shiprepair and offshore fabrication yard that will have two large dry docks.

A shiprepair partner will be brought in to help establish this part of the business.

The yard would aim to compete with yards in Singapore and China, although in the case of China, Noormustafa expects KLIP to have a strong competitive advantage.

“I’m sitting on the edge of the world’s busiest shipping lane,” he said. “Every vessel needs a dry dock. Today they have to burn their fuel and go to China. What if they just heave up anchor and turn into my place?”

At the same time, Noormustafa stressed that on all aspects of its business plans, KLIP is positioning itself to complement rather than compete with Singapore. There is enough business sailing past for both locations.

Long germination period

When the land reclamation works to build the new KLIP industrial port begin in early 2020, it will be more than three years since the second phase of the project was first announced.

Noormustafa dismissed any suggestion the project had got bogged down with delays.

Instead, he suggested it was time required to work the plan through Malaysian bureaucracy.

“I’ve got to love everybody,” he said. “They’ve got to love me too because I put real things on the table.

“When I started this project three years ago, I signed an agreement with the state government of Malacca. But you must understand my port’s location: it sits on the border with another state, Negeri Sembilan.

“In Malaysia, the maritime borders are very important between two states. I had to get both states to work together and agree. This takes a long time, especially because I am from the private sector.”

He said the project has involved working with the federal government in Malaysia at its highest levels.

“I met with our prime minister, Dr Mahathir bin Mohamad, six times,” he said. “He loved the project. He told me go ahead. He is the chairman of National Physical Planning Council. He was the one who passed my project on the 24 October.”

Land reclamation works for the new KLIP port are expected to be completed within 48 months, with infrastructure rolled out in subsequent phases.

Source: tradewindsnews.com

Plans to restore the port sector as a major economic contributor to Malacca like it was in the past are realistic and implementable, said a state executive council member.

State Public Works, Transport and Public Amenities Committee chairman Mohd Sofi Abdul Wahab said it was due to Malacca’s strategic position, as well as the existence of multi-functional ports.

“The ports are the Tanjung Bruas and Kuala Linggi ports. At the same time, the construction of an international cruise passenger terminal under the Malacca Gateway project is expected to be completed by the end of next year,” he told Bernama.

Mohd Sofi said once the international cruise passenger terminal was completed, it would become a hub for luxury cruise ships and increase tourist arrivals to the state.

“The Malacca Gateway project is expected to create 45,000 to 60,000 jobs, as well as vast business opportunities to hawkers and small traders to increase their income,” he said.

It was previously reported that the Tanjung Bruas Port would be developed at a cost of RM160 million.

On the Tanjung Bruas Port project, Mohd Sofi said it was aimed at transforming the port to be on par with the port of Tanjung Pelepas and Port Klang in the future.

He said the state government, in collaboration with Tanjung Bruas Port Sdn Bhd, would upgrade the infrastructure and basic facilities at the port to ensure it can be used by container ships for import and export business in the future.

Mohd Sofi said works on the Kuala Linggi International Port’s (Klip) expansion project was expected to commence at the latest by September next year.

“The port will be transformed into a trading hub and upgraded to accommodate larger ships,” he said, adding that the port expansion project, which included the deepening of the Kuala Linggi estuary, would also provide employment opportunities for the locals.

Meanwhile, Chief Minister Adly Zahari (above), when winding up the debate on the 2020 state budget recently, said with an estimated 100,000 vessels passing through the Straits of Malacca each year, the port sector had great potential to become an economic contributor to the state.

He said the Tanjung Bruas Port had handled 715,911 tonnes of cargo this year, compared with 644,719 tonnes in 2016.

“The port has also handled 5,039 units of containers from April to date, and the number is expected to increase between 10,000 and 15,000 units by December. The Roll-on Roll-off facility will also begin operations by 2020,” he said.

Adly said the Klip development project, which included a ship repair yard, tank farm, marine fabrication yard and other marine and port supporting services, was expected to create 6,000 jobs.

Source: malaysiakini.com

Demand for floating storage in Asia is growing, with about 30 VLCCs reportedly being used in the role off the Malaysian coast. Just over one-third of these can be found in the anchorage of Kuala Linggi International Port (KLIP).

Belgian shipowner Euronav’s two ULCCs — the 441,585-dwt Oceania (built 2003) and 441,561-dwt Europe (built 2002) are among the 11 large tankers being used there in storage roles.

KLIP has been popular among energy majors looking for a long-term floating storage location or to engage in ship-to-ship (STS) transfers.

Source: tradewindsnews.com

Malaysian port operator hopes Euronav ULCC will be the first of many that will supply bunkers from its anchorage.

Source: tradewindsnews.com

TAG Marine Sdn Bhd is expected to begin work on the RM15 billion Kuala Linggi International Port’s (KLIP) expansion project by the first quarter of 2020 (1Q20).

KLIP CEO Datuk Muhammad Saifullah Noor said the development will be rolled out in five years, funded by domestic direct investment (DDI) and foreign direct investment (FDI).

Muhammad Saifullah said the DDI is mainly provided by the company, while various foreign investors including from China, Belgium and the UK are involved in the FDI.

He said the second phase of the KLIP development would entail, among others, a 620-acre (251ha) land reclamation and a 1.5 million cu m tank farm construction.

“We have more than 400 clients today and thus, KLIP has the demand already. The 1.5 million cu m tank farm is for ready clients to meet their expectations and demand,” he said at the service agreement signing ceremony between TAG Marine and Euronav NV for the provision of home port, bunkering hub for low sulphur fuel and marine services in Kuala Lumpur yesterday.

The private port development plan had previously faced roadblocks due to environmental impact concerns and state maritime border considerations.

Muhammad Saifullah said the project plan has recently received a conditional approval by the National Physical Planning Council and it expects a development order to be issued by end of this month.

“We want to do onshore business with the new phase of KLIP development. The land reclamation is expected to be completed in 48 months, excluding infrastructure,” he added.

Established in 2001, the KLIP provides ship-to-ship cargo transfer services mainly for oil tanker ships.

The port, situated near the river-mouth of Sungai Linggi, Melaka, has received over 6,000 ship calls and facilitated more than 500 million barrels of liquid bulk cargo transfer as of Oct 2019.

The service agreement inked with Euronav, the world’s largest independent tanker company, is a long-term strategic collaboration to develop a home port, bunkering hub for low sulphur fuel and marine services at KLIP for up to 10 years.

The partnership is in line with the International Maritime Organisation’s new regulation of 0.5% global sulphur cap for marine fuel that will take effect on Jan 1, 2020.

Under the new global cap, ships will have to use marine fuels with a sulphur content of no more than 0.5% against the current limit of 3.5% to reduce sulphur oxides emissions.

Transport Minister Anthony Loke, who witnessed the signing ceremony, said the new collaboration would play a role to make Malaysia a bunkering hub for ships.

He said the country is well-positioned to be a bunkering hub and a place for refuge for international shipping through the Straits of Melaka.

The Straits of Melaka sees over 85,000 ship transiting annually to ferry international trade between the West and East, making it among the world’s busiest straits.

Euronav, an Antwerp, Belgium-headquartered crude oil tanker company, has more than 70 vessels including two floating storage and offloading vessels, two V-Plus, 43 large crude carriers and 25 Suezmax ships.

Source: themalaysianreserve.com

KUALA LUMPUR: The Kuala Linggi International Port (KLIP) is set to become a world class port of call in line with the government’s aspiration for the development of the maritime and bunker services industry in Malaysia.

Strategically located between major shipyards such as Singapore, Tanjung Pelepas and Port Klang, the KLIP will be able to provide good marine support services to ships passing through the Straits of Malacca.

Its development will be carried out under a long term collaboration agreement between T.A.G Marine Sdn Bhd and Belgium’s biggest shipping company, Euronav NV.

Transport Minister Anthony Loke Siew Fook, who witnessed the signing of the memorandum of understanding (MoU) here today, said the deal would have an impact on Malaysia’s maritime industry in line with the nation’s target to spur the economy and to develop the maritime hub as well as related industries.

“This is a long term agreement which will offer various opportunities for local maritime industry players.

“The ministry supports this move because we need to seize the opportunity to take full advantage of its location,” he told reporters after the signing ceremony.

Loke said the project is set to create jobs for local residents and boost the economy at the same time, as ships will be entering the port not only to refuel, but also to get fresh water supply and food.

“There will definitely be a demand for water supply and food from the shipmates when the ships come in to refuel, and local companies will be able to provide various services which will result in a positive impact on the nation’s economy,” he said.

Meanwhile, T.A.G Marine chief executive officer Datuk Muhammad Saifullah Noor said the MoU marked another major milestone for KLIP, adding that the company is confident that KLIP is on track for current and future expansion.

“KLIP is ready to cater to the needs and growing demand for port and maritime services with the expected increase in number of vessels plying through the Straits of Malacca annually.

“To date, KLIP has invested more than RM600 million in total expenditure focusing on growth and port expansion,” he said.

He noted that the MoU paves the way for the development of KLIP as a bunkering hub for the implementation of the low sulphur fuel requirement developed under the auspices of the International Maritime Organisation for ships transiting the Straits of Malacca. — Bernama

Source: theborneopost.com

Kuala Lumpur: TAG Marine, the operator of Kuala Linggi International Port (KLIP) signed a service agreement with international shipping company, Euronav for the provision of a bunkering hub, supply of low sulphur fuel and other marine services.

Transport Minister Anthony Loke said Malaysia was taking full advantage of its strategic location to develop its bunkering industry.

“We have a gem in the leaky pot, as the minister of transport my role is to polish all these gems. I think I have mentioned as a maritime country we have many advantages.

“The Ministry has promulgated the Malaysia Shipping Master Plan (2017-2022) aiming to revitalise shipping for a stronger economy,” he said at the announcement of the service agreement today.

The ministry recently launched the National Transportation Policy (2019-2030) to propel the nation in its logistic endeavours with enhancements in road, rail, air and maritime sectors, and their interconnectivity to help Malaysia realise its target as a Regional Distribution Hub.

NTP 2019-2030 would contribute to the nation’s economy and ensure Malaysia remains not just business-friendly but able to position itself as a global leader in the industry.

“And for this, I believe that KLIP can also play a vital role to help Government in realizing the policy,” said Loke.

About 85,000 ships transit annually through the Straits ferrying international trade between the ports of Europe, Africa, Middle East and the Indian Ocean rim countries through to the Asean States, China, Japan, the Korean Peninsula and the eastern seaboard of the Russian Federation. 

Source: nst.com.my

KUALA LUMPUR: T.A.G Marine Sdn Bhd (TAG MARINE) mengunjurkan pelaburan langsung asing dan domestik sebanyak RM15 bilion bagi fasa kedua Kuala Linggi International Port (KLIP) bermula suku pertama tahun hadapan.

Ketua Pegawai Eksekutif TAG MARINE, Datuk Muhammad Saifullah Noor. berkata pelaburan itu bagi membolehkan syarikat membina pulau seluas 620 ekar yang akan menempatkan kemudahan simpanan tangki dengan kapasiti 1.5 juta padu meter selain beberapa kemudahan lain.

Beliau berkata, jika bermula suku pertama 2020, pembangunan infrastruktur di pulau KLIP itu akan berjalan dalam tempoh lima tahun akan datang.

“TAG MARINE ketika ini mempunyai lebih 400 pelanggan antarabangsa dan hanya menumpukan kepada perkhidmatan luar pesisir. Namun, kami mendapati permintaan semakin meningkat dan terdapat keperluan untuk mempunyai fasiliti simpanan tangki dan kemudahan lain.

“Lantaran itu TAG MARINE menjalankan fasa kedua KLIP yang menumpukan kepada kemudahan pesisir. Kami menyasarkan 70 peratus perkhidmatan luar pesisir akan dipindahkan ke pesisir,” katanya.

Beliau berkata demikian selepas majlis menandatangani perjanjian antara TAG MARINE dengan Euronav NV di sini, hari ini.

Majlis disaksikan oleh Yang di-Pertua Negeri Melaka, Tun Dr Mohd Khalil Yaakob.

Hadir sama, Menteri Pengangkutan, Anthony Loke dan Pengarah Urusan TAG MARINE, Datuk Seri Noormustafa Kamal Yahya.

Mengulas lanjut, Muhammad Saifullah berkata, KLIP ketika ini melabur lebih daripada RM600 juta untuk pengembangan kemudahan dan infrastruktur, aset marin, sumber manusia serta kemajuan teknologi.

Beliau berkata, pelaburan itu berjalan secara berperingkat bagi memastikan KLIP mencapai standard dan kualiti antarabangsa.

Katanya, TAG MARINE memberikan perkhidmatan kepada lebih 6,000 kapal pelbagai saiz dengan lebih 500 juta tong cecair kargo pukal dipindahkan oleh pihaknya.

“Perjanjian dengan Euronav NV juga menjadi salah satu pencapaian penting syarikat kerana KLIP akan dijadikan pelabuhan utama, hab ‘bunkering’ untuk bahan api sulfur rendah serta perkhidmatan marin,” katanya.

Sementara itu, Loke berkata, projek KLIP yang dijalankan oleh TAG MARINE itu mampu memberi impak tinggi kepada ekonomi setempat.

Beliau berkata, kewujudan pulau pelabuhan baharu juga dapat memberi pekerjaan kepada penduduk setempat dari Melaka dan Negeri Sembilan.

Source: bharian.com.my

Once at the heart of the global spice trade, Malacca is pumping nearly $3 billion into an ambitious plan to put itself in demand in a different hot commodity – oil. 

The Malaysian state is reclaiming land along the Straits of Malacca to build a port that can handle the biggest tankers on the planet. The target: a slice of traffic sailing on to nearby Singapore, the top but congested trading hub in a region with $600 billion in annual oil trade – a third of global oil demand.

Funded largely by Chinese investors, port operator T.A.G. Marine and developer Linggi Base are building the 12.5 billion ringgit ($2.82 billion) Kuala Linggi International Port (KLIP) to offer storage, repair and refuelling services. At Singapore, 200 kilometers away, ships can spend costly time just waiting to deliver or take on goods, refuel or undergo maintenance work.

With Singapore’s port rules also banning floating storage and ship-to-ship (STS) transfers, the potential for savings and streamlined business is clear for KLIP users like trading company Agritrade Resources.

“Through our clients who are oil majors and oil traders, we see a competitive edge in locating our floaters (storage facilities) in KLIP resulting from lower costs and less congestion,” said Ng Xinwei, Chief Executive of Agritrade, which owns three supertankers.

Using 620-acres of reclaimed land, KLIP this month launched construction of a port with 1.5 million cubic meters of oil storage capacity and dry docks to handle the biggest oil tankers, hoping for completion within a decade.

KLIP is aware business is now dwarfed by Singapore, which handles well over 100,000 vessel calls a year, compared to KLIP’s few thousand per year. KLIP did not provide targets, but analysts estimated it could handle three times current volumes within a decade.

“Many of the shipyards in Singapore have been fully booked for three years,” said Saifullah Noor, Chief Executive of T.A.G. Marine. “Given the close proximity, we aren’t competing with Singapore, but are actually complementing them.”

PORT SERVICES IN DEMAND

Officials in Singapore did not comment on specific developments in Malaysia, but have previously said that growth in oil markets is strong enough to warrant further investment.

That’s a view shared among shipping industry executives, though some also see significance in Malacca’s project being backed by Chinese investors.

“I see this as a mainly China-led real estate investment project, under the ‘belt-and-road’ umbrella of Chinese economic expansion into south-east Asia,” said Ralph Leszczynski of shipping brokerage Banchero Costa.

The project is the latest in a string of developments trying to capture a piece of Asia’s rising oil demand. But while the waterways along the Straits of Malacca and Straits of Singapore – some of the busiest in the world – have created huge demand for port services, success is not guaranteed.

Malaysia’s Asia Petroleum Hub project, to the West of Singapore, launched in 2005 but was wound up in 2012 amid ballooning costs.

GETTING IT RIGHT?

At KLIP, operator T.A.G. Marine remains confident that the early stages of the port development project show a track record of success that can continue.

KLIP now has one of the region’s largest STS cargo transfer and floating oil storage zones, and has already handled some of the world’s largest oil tankers, like the ultra large crude carrier TI Europe – half a kilometer long.

Singapore clients have been paying attention.

One future potential KLIP customer is Singapore-based Toyota Tsusho Petroleum, part of Japanese trading company Toyota Tsusho Corp. The fuels supplier has signed a memorandum of understanding with T.A.G. Marine to explore bunkering.

“In KLIP, we have a newly developing port that will allow us to diversify our operations and better deploy our resources,” said Nobuyuki Iida, Toyota Tsusho Petroleum general manager.

Beyond the infrastructure, industry players say there’s a need to streamline some of Malaysia’s processes and regulations.

“To get it right, (bunker suppliers) need support from the (Malaysia) government to have proper pricing and support from oil majors for cargoes to be competitive with Singapore,” said Wan Mohd Fauzi, director of Malaysia-based bunker fuel supplier Alamgala Resources.

Source: maritime-executive.com

Once at the heart of the global spice trade, Malacca is pumping nearly $3 billion into an ambitious plan to put itself in demand in a different hot commodity – oil.

The Malaysian state is reclaiming land along the Straits of Malacca to build a port that can handle the biggest tankers on the planet. The target: a slice of traffic sailing on to nearby Singapore, the top but congested trading hub in a region with $600 billion in annual oil trade – a third of global oil demand.

Funded largely by Chinese investors, port operator T.A.G. Marine and developer Linggi Base are building the 12.5 billion ringgit ($2.82 billion) Kuala Linggi International Port (KLIP) to offer storage, repair and refueling services. At Singapore, 200 kilometers away, ships can spend costly time just waiting to deliver or take on goods, refuel or undergo maintenance work.

With Singapore’s port rules also banning floating storage and ship-to-ship (STS) transfers, the potential for savings and streamlined business is clear for KLIP users like trading company Agritrade Resources.

“Through our clients who are oil majors and oil traders, we see a competitive edge in locating our floaters (storage facilities) in KLIP resulting from lower costs and less congestion,” said Ng Xinwei, chief executive of Agritrade, which owns three supertankers.

Using 620-acres of reclaimed land, KLIP this month launched construction of a port with 1.5 million cubic meters of oil storage capacity, and dry docks to handle the biggest of oil tankers, hoping for completion within a decade.

KLIP is aware business is now dwarfed by Singapore, which handles well over 100,000 vessel calls a year, compared to KLIP’s few thousand per year. KLIP did not provide targets, but analysts estimated it could handle three times current volumes within a decade.

“Many of the shipyards in Singapore have been fully booked for three years,” said Saifullah Noor, chief executive of T.A.G. Marine. “Given the close proximity, we aren’t competing with Singapore, but are actually complementing them.”

Port services in demand

Officials in Singapore did not comment on specific developments in Malaysia, but have previously said that growth in oil markets is strong enough to warrant further investment.

That’s a view shared among shipping industry executives, though some also see significance in Malacca’s project being backed by Chinese investors.

“I see this as a mainly China-led real estate investment project, under the ‘belt-and-road’ umbrella of Chinese economic expansion into south-east Asia,” said Ralph Leszczynski of shipping brokerage Banchero Costa.

The project is the latest in a string of developments trying to capture a piece of Asia’s rising oil demand. But while the waterways along the Straits of Malacca and Straits of Singapore – some of the busiest in the world – have created huge demand for port services, success is not guaranteed.

Malaysia’s Asia Petroleum Hub project, to the West of Singapore, launched in 2005 but was wound up in 2012 amid ballooning costs.

Getting it right?

At KLIP, operator T.A.G. Marine remains confident that the early stages of the port development project show a track record of success that can continue.

KLIP now has one of the region’s largest STS cargo transfer and floating oil storage zones, and has already handled some of the world’s largest oil supertankers, like the ultra large crude carrier “TI Europe” – half a kilometer long.

Singapore clients have been paying attention.

One future potential KLIP customer is Singapore-based Toyota Tsusho Petroleum, part of Japanese trading company Toyota Tsusho. The fuels supplier has signed a memorandum of understanding with T.A.G. Marine to explore bunkering.

“In KLIP, we have a newly developing port that will allow us to diversify our operations and better deploy our resources,” said Nobuyuki Iida, Toyota Tsusho Petroleum general manager.

Beyond the infrastructure, industry players say there’s a need to streamline some of Malaysia’s processes and regulations.

“To get it right, (bunker suppliers) need support from the (Malaysia) government to have proper pricing and support from oil majors for cargoes to be competitive with Singapore,” said Wan Mohd Fauzi, director of Malaysia-based bunker fuel supplier Alamgala Resources.

Source: cnbc.com