DNex sees demand for portable container systems for fuel in rural areas

PETALING JAYA: Diversified business group Dagang Nexchange Bhd (DNex) sees demand for portable container systems (PCS) as a source of fuel supply in remote areas, especially among communities which rely on the pricey community drumming for fuel supplies.
The PCS, a 20-feet self-contained modular fuel storage and dispensing unit, with a capacity of holding up to 30,000 litres of fuel, is targeted to be used for the supply of petrol at the fish landing jetty in Malaysia.
DNex was awarded a contract worth between RM50 million and RM75 million by Petro Teguh Sdn Bhd to design, engineer, procure, construct, instal and commission of up to 105 units of PCS across the country, for two years.
Petro Teguh is among the three mini petrol station chains operating in the rural areas of Malaysia, following a Cabinet decision in 2008 to standardise operations of unbranded mini stations. The other two companies are IPTB Sdn Bhd which operates Buraqoil and Smart Stream Resources.
Dnex managing director Zainal Abidin Jalil said there is a “clear demand and interest” for the service which offers RON 95 petrol at retail price of RM2.20 and diesel to replace the community drumming fuel supply, which could go up to RM8.50 per litre.
The price is further subsidised to RM1.65 for fishermen.
“Remote places have been left behind and we want to decentralise economic activities to where people are working and living,” he said.
The group is looking to complete at least 50 units of PCS by year end and the remaining by 2019.
Zainal Abidin said the PCS’s are in various stages of completion and there is one up and running in Sabak Bernam, Selangor.
The contract also covers maintenance and supply of parts for 10 years, from which DNex is looking to recognise a revenue of RM2 million per annum from 2020.
Petro Teguh managing director Datuk Azmin Mustam Abdul Karim said the idea is to create a one-stop centre for the fishermen community which comprises not only a fuel station but refrigeration and drying facilities for fish and a Kedai Rakyat 1Malaysia 2.0.
A PCS will cost RM600,000 to RM750,000 as opposed to a full-fledge petrol station which would cost between RM3 million and RM5 million.
Maintenance cost for a petrol station would be about RM3,000 a month and would only require one or two operators.
Prior to the DNex deal, Petro Teguh already had 27 PCS stations under its wing, including one in Pulau Tuba, Langkawi.
Petro Teguh has also set its sights on Southern Philippines, a deal which could rake in RM28 million for some 35 PCS.