June 10, 2013 [The Star Online] - Malaysia International Shipping Corporation Berhad (MISC) will invest another RM1 billlion for the second phase of development of its ATT Tanjung Bin (ATB) oil storage terminal in Tanjung Bin, Johor.
In 2009, MISC partnered VTTI, a wholly-owned subsidiary of Vitol and one of the world’s biggest energy traders, to develop ATB.
This eventually led to MISC acquiring a 50% stake in VTTI for US$840mil (RM2.55bil) in 2010, transforming it into a global player in the tank terminal business in the process.
MISC president-cum-chief executive officer Datuk Nasarudin Md Idris earlier this year was quoted saying that VTTI was yet to be a substantial component of MISC’s business portfolio relatively in terms of income contribution.
“But it is positively contributing as we recognised 50% of VTTI’s profit. I think it will be a substantial component in our business portfolio by 2015 when VTTI and ATB expand,” he said then.
Another positive factor according to Nasarudin is the weakening bunker price which constitutes 27% of its operating cost.
“For the last two months, bunker has been hovering at the US$600 per tonne level compared with the previous levels at US$650 per tonne,” he says.
