KUALA LUMPUR: Bintulu Port Holdings Bhd (BPHB) has signed an agreement with Strait Inter Logistics Bhd’s unit, Tumpuan Megah Development Sdn Bhd (TMD), to provide bunkering services at Bintulu Port, which bodes well for BPHB’s plan to diversify its business.
Under the agreement, TMD would operate, manage and provide bunkering services located at the general cargo anchorage within Bintulu Port for three years, with the contract renewable for not more than two years to be mutually agreed upon.
BPHB group chief executive officer Datuk Mohammad Medan Abdullah said the port’s plan to offer bunkering services is one of the strategic thrusts, and this would expand the port’s capacities.
“We would also capitalise on key growth market sectors to maintain our profitability and expand our revenue streams,” he said today.
However, he did not reveal estimates of the expected contribution from the segment.
He said the introduction of fuel bunker services via ship-to-ship operations within Bintulu Port’s limits would provide the much-needed solution to these vessels’s fuel requirements and ultimately help shorten vessel voyage and turnaround time.
“We also know that the best way is to leverage and tap on an already established player’s capabilities and customer base,” he added.
BPHB’s unit Bintulu Port Sdn Bhd, which is Malaysia’s third largest port in terms of cargo volume handled, handled a total throughput of 48.34 million tonnes of cargo in 2018.
Bintulu Port was also on track in implementing its strategies so as not to be over-reliant on Liquified Natural Gas (LNG) cargoes.
The non-LNG sector cargo throughput made up almost 51 per cent of the total cargo throughput in 2018.
Meanwhile, TMD director Raja Ismail Raja Mohamed said the agreement would allow the company to establish a base in the bunkering business in Bintulu and subsequently enlarge its business in East Malaysia.
“Although the global business outlook remains challenging, the Malaysian economy is expected to be resilient on the local front.
“The international shipping industry has seen a pickup in activities in the maritime sector, and it’s related to the oil and gas industry as well. This would be beneficial for trading nations like Malaysia,” he added. – Bernama
