Group executive chairman and chief executive officer Abdul Rashid Isa said the MOA was the first step towards the formation of the consortium.
“KIC and Nathalin with the support from PTT will establish a shipping trust for the acquisition of the 22 vessels to render door-to-door services (in terms of logistics and transportation) supporting the operations of the oil terminals.
“In the immediate term (prior to the establishment of the trust), we will first inject our own vessels and time-charter a number of vessels to support the current demand from the customers of the oil terminals,” he told reporters after the MOA signing ceremony and the launching of KIC two new floating storage units yesterday.
The signing ceremony was witnessed by former Prime Minister Tun Abdullah Ahmad Badawi and Transport Ministry head of maritime Abdullah Yusuf Basiron, who represented its minister Datuk Seri Ong Tee Keat.
Abdul Rashid said KIC and Nathalin would lead as promoters for the formation of the consortium with the support from PTT to collaborate and own the 22 vessels.
“But other interested parties are also welcomed to be part of the consortium,” he said.
On APH, Abdul Rashid said the completion was seven to eight months delayed due to the extensive works in the method of stabilising the man-made island.
“But now APH is 61% completed and slated to be operational by August next year,” he said.
APH already has a long-term tenure with PTT to take up 100% of its storage capacity there.
On the new floating storage units, Abdul Rashid said the acquisition of Sri Qadriah I and II at US$40mil would boost KIC’s combined storage capacity to 900,000 cubic m.
The floating storage units are actually retrofitted very large crude carriers.
KIC first floating storage unit, Kadriah I acquired in 2003 was recognised by Platts Singapore.
“And when APH is completed, the total storage capacity will be at 1.8 million cubic m,” he said.
PTT is a Thai state-owned oil and gas company and also the only Fortune Global 500 company from Thailand in 2009.
Nathalin is the largest private owned shipping company in Thailand.