May 10 4:05 AM - Tanjung Langsat Port Sdn Bhd, a subsidiary of JohorCorporation Bhd, has scored a coup by getting a major oil trading companyto shift the bulk of its tanking operations from Singapore to therelatively new port in Pasir Gudang.

On its part, Tanjung Langsat Port would invest RM66.50 million for a100,000 cubic metre tank farm to cater for the oil trading companyTrafigura Pte Ltd's needs, Johor Corp chief executive Tan Sri Muhammad AliHashim said.

Speaking at the signing of the deed of commitment between the portoperating company and Trafigura in Kuala Lumpur on May 10, he saidTrafigura would utilise the tank facilities when completed by early 2008.

Speaking to reporters later, Muhammad Ali said the port would borrow fromthe banks to finance the construction of the tank facilities.

Trafigura is a major global energy and commodities trading company. Itscurrent regional operations are conducted from Singapore and with thiscommitment, it will shift a major portion of the operations to TanjungLangsat Port.

“We have been operating at the 150,000 cubic metre tank farm facility inSingapore for the past seven years to serve the Indonesian, Vietnamese andThai markets," said Trafigura managing director Ichiro Tokuhashi.

"There is limited space for expansion and operational cost is also risingin Singapore,' said Tokuhashi said on why Trafigura chose Tanjung Langsatfor its tanking operations.

"At the same time, we found out that Tanjung Langsat Port, which isstrategically located, is also developing a tank farm. We will start with100,000 cubic metres to handle mainly gasoline and hope to double it (thecapacity) if business is successful," he said.

"We also hope that Tanjung Langsat Port would expand its facilities tocater to our other products like diesel," he said. Trafigura handles 2.5million barrels of gasoline in Singapore monthly.

Muhmmad Ali said Johor Corp had invested RM400 million in the developmentof Tanjung Langsat, off Pasir Gudang, and a further RM80.90 millionthrough its subsidiary Tanjung Langsat Sdn Bhd for the necessary portfacilities and supporting infrastructure.

He said the Tanjung Langsat Port was at the same time promoting the hubfor non-edible liquid cargo such as petroleum products, petrochemicals andoleochemicals.

The port is also leveraging on Pasir Gudang, with the world’s largest palmoil refining capacity and highest concentration of oleo-chemicalsindustrial capacity.

Four such plants in Pasir Gudang are producing 370,000 tonnes ofoleo-chemicals annually and the output would increase to 500,000 shortly,Muhmmad Ali added.

He said the port was also gearing up to develop an integrated regionalmarine support base to serve the growing offshore oil and gas industry inthe region.

"We have started negotiations with several companies and would welcomeproposals from other potential users to jointly explore new businessopportunities," he added.