KUALA LUMPUR: KA Petra Sdn Bhd and Hong Kong-based port operator Hutchison Port Holdings Ltd are investing up to US$180 million to set up the world's biggest 'ship-to-ship (STS) hub' in the waters of Johor Bahru port.
"Construction of this STS hub is slated for next year. We expect it to complete by the end of 2021," said KA Petra executive chairman Datuk Shahrul Amirul.
"We're in talks with several banks to raise funds as the initial investment is estimated at between US$150 million and US$180 million," he added.
The STS hub, to be developed by joint venture company KA Petra STS Hub Sdn Bhd, is seen to trigger a resurgence in the Malaysian maritime sector, create jobs and attract highly-skilled Malaysians.
It will have the capacity to store nine million tonnes of bunker fuel.
The area where STS hub will be built encompasses 2,800 acres of waters that is 3.5km offshore Port of Tanjung Pelepas within Malaysian waters.
The new STS hub will have mooring buoys and “dolphins” to berth the tankers.
The usage of dolphins, isolated marine structures for berthing and mooring vessels, will enable mother ships to be berthed without the need for large piers or docks.
"After two years of talks, KA Petra and Hutchison Port are developing this project on a 70:30 basis," said Shahrul at the signing of the joint venture here yesterday.
It was witnessesed by Prime Minister Tun Dr Mahathir Mohamad, Transport Minister Anthony Loke and Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail.
Shahrul said the STS hub could contribute as much as RM18 billion to the Malaysia's economy annually.
Hutchison Port group managing director Eric Ip said the project would have a positive impact on the maritime sector across the region.
“Given our global port network, we are confident of introducing the many benefits offered in this hub to our global shipping lines customers,” Ip said.
"We're a long time investor in Malaysia. This STS hub investment in the waters of Johor Bahru port will complement our existing investments at Westports," he added.
Since 2000, Hong Kong tycoon Li Ka Shing-controlled Hutchison Port is a 30 per cent shareholder in Westports Holdings Bhd.
A check with the Registrar of Companies shows that KA Petra is almost wholly-owned by Datin Lelawati Raffik.
When asked on the company ownership, Shahrul said: "Yes, Lelawati owns the company. That shows how much I love my wife."
KA Petra is one of four operators licensed by the Transport Ministry to provide STS services to vessels coming to the Port of Tanjung Pelepas (PTP) in Johor.
Shahrul said the STS hub complements oil storage at Tanjung Bin and refining activities at Pengerang, Johor.
“"We're not competing against ATB and PDWT. The STS hub will add value to the whole oil and gas services supply chain."
ATT Tanjung Bin Sdn Bhd (ATB), a joint venture between MISC Bhd and Vitol, operates a petroleum product storage terminal in Tanjung Bin, has a storage capacity of almost one million cu m.
Phase 1 of the Pengerang Deepwater Terminal (PDWT) has a storage capacity of 1.3 million cubic metres of petroleum products, while Phase 2 has a capacity of 2.1 million cu m.
The PDWT is a joint venture between Dialog Group Bhd, Royal Vopak NV and Johor’s State Secretary Inc for Phase 1, and the three parties plus Petroliam Nasional Bhd for Phase 2.