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Sabah Ports to raise financing for new oil jetty
Monday, 24 February 2020

Kota Kinabalu – Sabah Ports Sdn Bhd (Sabah Ports), a subsidiary of Suria Capital Holdings Berhad on Friday signed a Tawarruq Financing Facility of RM80 million with Bank Pembangunan Malaysia Berhad (BPMB) for the construction of a new oil jetty extension at Sapangar Bay Oil Terminal (SBOT).

The Facility is under Maritime Fund 2.0, was managed by BPMB to financially assist companies tht are involved in marine and oil and gas-related activities towards increasing the efficiency and terminal operations of local ports, and other marine ancillary activities.

Suria Capital Group Managing Director cum Managing Director of Sabah Ports, Ng Kiat Min said the signing ceremony marked another important milestone for Sabah Ports as the mandated operator of ports in Sabah.

It highlights our continuous commitments and endless initiatives to upgrade the port facilities so as to enhance port capacity and service efficiency level in Sabah, she said.

The projects is indeed a testimony of our initiative to bring about new level of efficiency to our port facility and services.

Ng said, construction of the new jetty extension at SBOT is very timely and crucial in view of the high utilization rate and growing liquid cargo throughput being handled at the current jetty.

SBOT is the only terminal handling liquid bulk serving the west coast of Sabah. It is, therefore, becoming increasingly important to build the extension ahead of time, she remarked.

The extension will entail the construction of an additional jetty to accommodate two more berths designed to handle two vessels at one time of further efficiency. The additional berths will help to ease congestion and reduce vessel’s waiting time.

More importantly, construction of the new jetty will allow maintenance works on the pipelines to be carried out more efficiently without interrupting the daily operations and compromising on safety.

Once completed after 24 months, SBOT would be able to cater for more vessels and its twin jetties could accommodate vessels from the current capacity of 30,000 Deadweight tonnage (DWT) to a higher capacity of 60,000 DWT. Currently, it handles an average volume of 1.2 million tonnes of bulk oil on annual basis, serving a few oil majors, namely Shell, Petron and Petronas.

Ng said, with the completion of the new jetty, we are able to play a bigger role in serving our customers with better efficiency.

She added that the company is looking forward to undertaking a more significant role in promoting the oil and gas activities including the L&G business as well as the maritime services in the state. With good location and adequate facilities, Sapangar Bay Oil Terminal has the potential to grow as an oil and gas distribution hub.

We will continue to play a role towards supporting the state’s economic ambition by involving ourselves in platforms that promote manufacturing and industrial growth and more importantly, facilitating connectivity for local businesses to go global, said Ng.

During the signing ceremony, Ng represented Sabah Ports Sdn Bhd, while Bank Pembangunan was represented by its President cum Group CEO, Arshad Mohamed Ismail.

Also present were Noorida Baharuddin the chief financial officer of Suria Capital and Ahmad Mochtar Hashim, Chief Business Officer of Bank Pembangunan.

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