KL Bunkering Sdn Bhd, a pioneering joint venture between Bursa Malaysia listed Hiap Huat Holdings Berhad (HHHCORP:0160) and KL Platform Services Sdn Bhd (KLPS), has commenced the construction of a RM100 million cutting-edge liquid bulk storage terminal at West Port, Port Klang.
This milestone is a 46+12-year land lease agreement obtained from Westports Malaysia Sdn Bhd (a subsidiary of Westports Holdings Berhad). This Development responds to Malaysia’s increasing demand for liquid bulk storage and underscores KL Bunkering’s commitment to environmental sustainability and innovative industry practices.
The new terminal, set to be a game-changer in the industry, will occupy a strategic location at West Port, Malaysia. This prime positioning will enable the terminal 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 meters spread across forty-one (41) vertical storage tanks.
It is designed to accommodate a diverse range of products, including petroleum, petrochemicals, and biofuels, ensuring versatile and comprehensive storage solutions for various industrial needs.
Dato’ Chan Say Hwa, Managing Director of Hiap Huat Holdings Berhad, expressed his enthusiasm for the project. “We are thrilled to embark on this ambitious project, which represents a significant milestone for the Hiap Huat group and the Malaysian liquid bulk storage landscape. 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.”
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, 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. This partnership includes 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.
The terminal’s development will be executed in three planned phases, with an estimated capital expenditure of approximately RM100 million over five years. The first phase is anticipated to be operational by the fourth quarter of 2025. This phased approach ensures a robust and scalable development process, allowing KL Bunkering to meet the growing storage demands effectively.
With a seasoned management team boasting extensive experience in the maritime and oil and gas industries, KL Bunkering Sdn Bhd is well-equipped to navigate the complexities of this ambitious project and deliver exceptional value to its stakeholders.
