03/05/2006 (Reuters)  - Pasir Gudang Port, the world's largest port for palm-oil shipments, declared business as usual on May 3, saying a major fire last weekend had not disrupted cargoes of the country's biggest non-petroleum export.

"The palm-oil operation has not been affected at all," Damon Nori, assistant general manager of the Johor Port Authority at Pasir Gudang, told Reuters by telephone.

Lightning struck petroleum storage-tanks at the port, in the southern state of Johor, on April 28 night, setting three tanks ablaze and forcing the port to suspend operations until early April 29 morning, after the fire had been brought under control.

The fire produced thick black smoke that could be seen from neighbouring Singapore, across the Johor strait, media reports said. It struck a port-side petroleum storage depot belonging to Petronas, destroying three tanks there holding 720,000 litres of petrol and aviation fuel.

No one was injured in the blaze, which also created concerns in the palm-oil market.

Petronas had a total of 16 petroleum storage tanks at the port, a Petronas spokeswoman said. Nori added that other oil companies' storage and port facilities had escaped damage.

Nori did not give any figures for palm-oil storage and shipping at Pasir Gudang, but the Johor Port Authority's website shows that liquid bulk-cargo accounted for almost half of cargo handling at the port in 2004.

Pasir Gudang loaded and unloaded palm oil at a separate jetty to petroleum, which landed at its dangerous-cargo jetty, Nori said. - Reuters