HIAP Huat Holdings Bhd, an ACE Market-listed company involved in scheduled waste management, recycling and refining of petroleum-based products, has embarked on the construction of an RM100 mil cutting-edge liquid bulk storage terminal at West Port in Port Klang.
The project will be undertaken by the group alongside KL Platform Services Sdn Bhd through a pioneering joint venture vehicle, KL Bunkering Sdn Bhd.
This milestone is a 46+12-year land lease agreement obtained from Westports Malaysia Sdn Bhd (a subsidiary of multi-cargo terminal Westports Holdings Bhd).
This said development is in response to Malaysia’s increasing demand for liquid bulk storage and underscores KL Bunkering’s commitment to environmental sustainability and innovative industry practices.
Set to be a game-changer in the industry, the new terminal will occupy a strategic location at West Port. This prime positioning will enable the facility to capitalise on West Port’s superior connectivity and access to local and international markets.
The facility will feature an impressive storage capacity of 123,800 cubic metres spread across 41 vertical storage tanks.
It is designed to accommodate a diverse range of products, including petroleum, petrochemicals and biofuels, thus ensuring versatile and comprehensive storage solutions for various industrial needs.
“Our commitment to green practices combined with our strategic location and cutting-edge technology will position us as one of the leaders in the industry while contributing to a more sustainable future,” commented Hiap Huat’s managing director Datuk Chan Say Hwa.
Robust growth
Through several key initiatives, the terminal will embody KL Bunkering’s dedication to environmental stewardship. It will employ certified sustainable products as the primary heating source, hence significantly reducing the environmental impact.
In line with global sustainability trends, the focus will also be on storing environmentally-friendly products such as biofuels and materials related to the circular economy.
This approach minimises ecological footprints and supports the transition towards a greener and more sustainable industry.
In addition to its environmental initiatives, KL Bunkering has established a strategic partnership with Qastalani Sdn Bhd, a leading player in the Malaysian bitumen market.
The partnership entails a 46-year collaboration agreement for approximately 38% of the first phase capacity with an option to expand up to 40,000 cubic meters. This collaboration highlights the strong market confidence in KL Bunkering’s capabilities and the project’s potential.
More broadly, the terminal’s development will be executed in three planned phases with an estimated capital expenditure of approximately RM100 mil over five years.
The first phase is anticipated to be operational by 4Q 2025. This phased approach ensures a robust and scalable development process which allows KL Bunkering to meet the growing storage demands effectively.
At 2.46pm, Hiap Huat was up 0.5 sen or 3.23% to 16 sen with 3.2 million shares traded, thus valuing the company sat RM64 mil. – June 21, 2024
