LATEST NEWS :





JPA, Smart Crest to develop RM2b Bunker Island in Johor
Published on: Wednesday, August 14, 2019
By: Bernama

PUTRAJAYA: Johor Port Authority (JPA) has entered into an agreement with a private company, Smart Crest Sdn Bhd to develop a RM2 billion Bunker Island, near Tanjung Bin in Johor.

Transport Minister Anthony Loke Siew Fook who witnessed the signing of the agreement on Tuesday said, the fully-funded private sector project would put Malaysia and particularly Johor on the world’s map as a major player in the oil storage and bunker business.

“At the national level, the development of this island will be a significant economic multiplier for the country as ships that enter to discharge or load oil will spend on other services such as agency fees, port charges and deliveries to the ship and crew transfers, hotels, career development and trade finance,” he said.

The project according to him will create a centre for oil break bulking, make-bulking, blending and redistribution to both domestic and regional market.

The agreement was signed by JPA Chairman Rosnan Fathlal and Smart Crest Sdn Bhd Managing Director Ir Cher Lee Kiat.

Located within the Free Commercial Zone of Tanjung Pelepas, the Bunker Island sits on 100 acres of the reclaimed island at Tanjung Bin.

The development of Bunker Island will take four years to complete.

It will have 61 tanks located in five tank pits, a storage capacity of approximately 1.20 million cubic metres, two jetties and seven berths, besides capabilities to handle various type of products.  

The Minister also said the project would also provide Malaysia with an excellent opportunity to promote cleaner marine fuel in accordance with the International Maritim Organisation’s (IMO) regulation, effective January next year.

Speaking to the media later, Loke said his ministry would ensure the long-delayed Bunker Island project start as soon as possible by ensuring that no bureaucratic red tape hinder the implementation of the high impact project.

“The developers are confident that the first phase of the project which is the oil tank development can be completed within two years, thus generating revenue for the next phase of development,” he said.

Meanwhile, Rosnan said JPA handed a 30-year lease period to the developers with a lease rent of RM500,000 a year for the first two years.

For the subsequent period, a lease payment of RM2.19 million would be imposed for the third, fourth and fifth years and a 10 per cent increase in rent once for every five years, he said. –  Bernama



ADVERTISEMENT


Other News
Advertisement 


Follow Us  



Follow us on            





Business Top Stories