PETALING JAYA: Straits Inter Logistics Bhd expanded its bunkering services into Lumut Port, following an agreement signed between its 55%-owned unit Tumpuan Megah Development Sdn Bhd and the port’s operator, Lumut Maritime Sdn Bhd today.
The agreement has a contract period of one year from Oct 1, 2019 with the option to renew for not more than one year, upon mutual agreement.
A bunkering anchorage area namely Pit-Stop Bunker Hub @ Lumut will be set up for the business venture.
Under the agreement, Tumpuan Megah will have the exclusive right to operate, manage and provide bunkering services located at or within Lumut Port limit including but not limited to jetties/wharfs, anchorage area and the designated Pit-stop Bunker area.
Straits group managing director Datuk Sri Ho Kam Choy said the tie-up with Lumut Maritime was part of the company’s overall strategy to establish a collaboration with strategic ports in Malaysia to bunker for vessels within their port limits.
“We believe that the opportunity to collaborate with Lumut Maritime will bring forth new dimensions to both parties’ infrastructures which will allow both parties to tap the vast potential in the bunkering industry.
“The tie-up with Lumut Maritime definitely marks an important milestone for Straits for its expansion in the bunkering business,” he said.
Currently, Tumpuan Megah operates in eight ports in Malaysia, including Pasir Gudang Port, Tanjung Pelepas Port, Johor Baru Port, Kuantan Port, Kemaman Port, Kuala Terengganu Port, Labuan Port and Miri Port.
To recap, Straits had completed its acquisition of a 55% stake in Tumpuan Megah in September 2018 in an effort to expand its business footprint. The acquisition of Tumpuan Megah enlarged Straits’ fleet from two vessels to nine, with a total capacity of 12 million litres.