KUALA LUMPUR, Sept 26 (Bernama) — MMC Corporation Bhd’s unit Seaport World Wide Sdn Bhd (SWW) and world’s leading oil terminal, Vitol Terminal BV’s unit ATT Tanjung Bin Sdn Bhd Friday sealed a deal which will see ATT investing up to RM1 billion in Iskandar Malaysia.
Under the agreement, SWW will lease approximately 48 hectares of land at the rate of RM20 per square feet (for 30 years) to ATT.
Vitol Terminals chief executive officer, Rob Nijst said ATT will be investing RM1 billion (for phase one) to construct facilities for an oil terminal which will provide for blending and storage of crude oil, petroleum and petrochemical products with an initial capacity of 750,000 cubic meters.
ATT will construct 5 to 12 berths (in phases) and marine jetties which can handle various sized tankers from 25,000 – 180,000 deadweight tonnes (DWT) and Single Buoy Moorings (SBM) capable of handling the larger tankers, he said in a statement here, Friday.
He said besides the strategic location of Tanjung Bin in relation to the navigational routes, shipping anchorages and regional energy pricing centre, other supporting factors for choosing Tanjung Bin was the competitive operating costs available in Iskandar Malaysia.
Other planned strategic developments within Iskandar will provide synergistic value to the company’s project, he said.
MMCs chief executive officer, Hasni Harun said the setting up of Vitol Terminals facility in South West Johor was timely and marked another chapter of MMCs investment in Iskandar Malaysia.
Under the terms of the agreement, MMC, through its fully owned subsidiary SWW will have the option to acquire a 20 percent interest in the project.
“This is a significant progress to MMCs and SWWs long term plans to develop the area into a new growth area for marine activities as outlined in the master-plan which was committed together with the state government back in 2002. Under the master-plan, we have already completed the construction of the Tanjung Bin Power Plant built at a cost of RM7.6 billion and the Port of Tanjung Pelepas (PTP) which is today ranked 17th amongst the worlds busiest ports,” added Hasni.
Meanwhile, Datuk Mohd Sidik Shaik Othman, director of MMC and SWW said that the deal demonstrates Vitol Terminals confidence in MMC as a world class infrastructure and utilities provider who is capable of catering to world class requirements.
“We are also currently negotiating deals with other parties who are interested in being a part of the Tanjung Bin Petroleum and Maritime centre. The presence of Vitol Terminals BV is good for both MMC and Iskandar Malaysia as it will further spur other global players to come and invest here,” said Sidik.