Saturday, July 07, 2007

Asia Petroleum Hub commencement of works ceremony

As promised in my previous post, here are some exclusive pictures from the commencement of works ceremony.

What you won't read in the newspapers. Apparently there was a bit of drama on the day of the ceremony (5th July). In the morning at about 9.30 am a strong storm started and blew off some of smaller tents that had been put up on the island. The generator went off and everything was in big mess. However the storm suddenly let up around 11 am and everything went off as planned.

Haji Abdul Rashid Mohd Isa Al-Qadiry, the Executive Chairman of APH

Prime Minister of Malaysia YAB Datuk Seri Abdullah Ahmah Badawi

The official press release:

Asia Petroleum Hub Set to Place Malaysia in the Global Petroleum Trading Market

Pulau Petroliam Johor, Thursday, 5th July 2007 - The highly anticipated Asia Petroleum Hub (APH) project was officially named today with the honorable Prime Minister of Malaysia YAB Datuk Seri Abdullah Ahmah Badawi performing the commencement of works ceremony witnessed by Johor Menteri Besar YAB Dato’ Haji Abdul Ghani Othman , Minister of Transport YB Dato Seri Chan Kong Choy and other luminaries.

This RM1.4 billion project sited on a 100-acre (approx. 40 ha) reclaimed island near Tanjung Pelepas is being developed by homegrown KIC Oil & Gas (KIC), which holds a 90% stake and the remaining 10% is held by Trek Perintis Sdn. Bhd., a government-approved strategic financial investor. KIC is the largest independent terminal operator as well as a major bunker player in Malaysia.

APH, targeted for completion in 2009, will be an integrated facility with multiple jetties capable of handling all sizes of vessels from 1,000 dead weight tonnes (DWT) coastal tankers to 350,000 DWT Ultra Large Crude Carriers as well as accommodate over 3,000 vessels calling at the terminal annually. The terminal is designed to handle over 30 million tons of petroleum products and is expected to achieve a turnover exceeding RM200 million annually.

In the first 5 years, in is anticipated that the value created from APH will be RM1.1 billion from storage revenues alone. In addition, the value of oil stored will be in excess of RM100 billion and the value of physical and paper trading generated from the Hub will be over RM1 trillion.

The Hub is essential in meeting the demands for petroleum storage and blending requirements which presently relies on foreign facilities. It provides the much needed option for additional strategic storage of petroleum products on Malaysian soil.

The IDR will receive a massive boost from the project. The Hub will be a natural pillar of the Logistics sector and the IDR will reap various benefits from the spin-off effects of the Hub. This will help ensure the IDR not only takes off on a firm footing but grows from strength to strength.

Tuan Haji Abdul Rashid Mohd Isa Al-Qadiry, the Executive Chairman of APH said, “The Hub will not only put Malaysia at the heart of the global petroleum market and contribute significantly to the country’s GDP but will help to spur the economic growth of the State of Johor as it provides a spectrum of socio-economic benefits through the increase of business activities that will bring about job creation and improved infrastructure”.

He added, “One of APH’s mission is to reduce the cost of landed petroleum products in Malaysia by eliminating double-handling charges as shipments will be made directly from source to the Hub.

The entire cost of this project is undertaken by APH and funded via equity and project financing provided by a local bank.

As part of its CSR initiatives, APH is firm in its support of the Environmental Protection Zone which houses the mangrove conservation area.

APH will be managed by KIC Oil Terminals Sdn Bhd. which also manages KIC’s oil terminals in Port Tanjung Pelepas and West Port. Once completed APH is poised to complement Singapore, currently the world’s largest trans-shipment for petroleum products.

The project team comprises of ZAQ Construction Sdn Bhd who is the managing contractor entrusted with the completion of the project, Mott MacDonald Ltd, Nam Fatt Corporation Bhd., Kencana Petroleum Bhd., Muhibbah Engineering Bhd., and Qi-PMC Sdn Bhd.

About The KIC Group

KIC Group of Companies is currently the largest independent terminal operator in Malaysia with a total storage and production capacity of 522,000 cbm. Through their Floating Oil Processing Terminal, Kadriah I, which is anchored just outside Port Tanjung Pelepas and another land based terminal based in West Port, Port Klang, KIC currently caters to the bunker needs of the country’s two busiest ports. In the last three years KIC has handled 19 million metric tones (MT) of cargo and has successfully turned around the utilization of storage facilities at Westport from 300,000 MT to 3 million MT, transforming it from a domestic petroleum depot to an international petroleum terminal.

The company was founded by Tuan Haji Abdul Rashid Mohd Isa Al-Qadiry and Faidzan Hassan Al-Qadiry, who are also the major shareholders.


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