Business Times - 09 Nov 2002

Johor expects bunkering port to be ready in 3 years

RM7b project to include petrochem, power plant complex

By
Eddie Toh
in Kuala Lumpur

THE proposed bunkering port in Johor which will compete with Singapore on the sale of ship fuel will be ready within three years, according to a report yesterday.

Johor Chief Minister Abdul Ghani Othman said the project and a nearby petrochemical complex and power plant will cost RM7 billion (S$3.2 billion), according to The Star newspaper yesterday.

'We decided to build the facility so that vessels calling on Port of Tanjung Pelepas (PTP) need not go elsewhere to get fuel, water supply or food,' he told reporters after tabling the state's 2003 Budget on Thursday.

He said the project is part of the Johor state's plan to develop a 'one-stop centre' for liners. 'The bunkering facility can be a tremendous success for Johor due to its strategic location, affordable prices and abundance of supply.'

Singapore is the world's busiest bunkering port, supplying 18 million tonnes of ship fuel worth over S$5 billion annually.

The Johor state government is a partner in the bunker port proposed by Syed Mokhtar Al-Bukhary, who is the controlling shareholder of PTP.

The reclusive tycoon will also build the petrochemical complex and the power plant next to the bunkering port. The Johor government has set aside 4,000 acres for the projects, which Syed Mokhtar's Seaport Terminal will develop in stages.

Seaport Terminal has roped in national oil corporation Petroliam Nasional to help jumpstart the bunkering port and petrochemical projects.

The projects are part of the grand scheme to turn Johor into a major transportation and distribution hub to rival Singapore.

Syed Mokhtar is also turning Senai Airport in Johor into an air cargo hub to rival Changi Airport. Mr Ghani said work on the airport and a new highway in the state would begin next year. He is also reported to have said that work on the RM2-billion new bridge project to replace the Malaysian end of the Causeway linking it to Singapore would begin next year.