June 21, 2024 [New Straits Times]- Hiap Huat Holdings Bhd’s joint venture company with KL Platform Services Sdn Bhd plans to build a RM100 milion liquid bulk storage terminal at West Port, Port Klang over a five year period.
In a statement today, the company said its 60 per cent-owned KL Bunkering Sdn Bhd has signed a 46 year+12 year land lease agreement with Westports Malaysia Sdn Bhd to develop the liquid bulk storage terminal.
The facility will feature a storage capacity of 123,800 cubic meters spread across 41 vertical storage tanks.
It is designed to accommodate a diverse range of products, including petroleum, petrochemicals, and biofuels, ensuring versatile and comprehensive storage solutions for various industrial needs.
KL Bunkerinng will take a phased apprach to constructing the terminal, to ensure a robust and scalable development process, to meet the growing storage demands effectively.
The first phase is expected to be operational by the fourth quarter of 2025.
Hiap Huat said that KL Bunkering has secured a partner for 38 per cent of the first phase capacity, with an option to expand up to 40,000 cubic metres.
KL Bunkering has signed a 46-year collaboration agreement with Qastalani Sdn Bhd, a leading player in the Malaysian bitumen market.
Qastalani will build two bitumen storage tanks, each with a capacity of 7,625 cubic metres.
The construction will take place on a 3.0-hectare plot of land.
“Upon completion, these storage tanks will be transferred to KLB for operation on behalf of Qastalani for a period of 46 years, commencing from the date of the agreement” it added.
Hiap Huat said the location will allow the terminal to leverage on West Port’s connectivity and access to both local and international markets.
Hiap Huat managing director Datuk Chan Say Hwa said the company is enthusiastic to embark on the project, viewing it as a significant milestone for both the group and the Malaysian liquid bulk storage sector.
“Our commitment to green practices, combined with our strategic location and cutting-edge technology, will position us as one of the leaders in the industry while contributing to a more sustainable future,” he said.
Hiap Huat’s share price was up 6.45 per cent to 16.5 sen, giving it a market capitalisation of RM65.8 million.
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