RM40m to develop TAG Marine buisness
Friday, 24 February 2012 | 16:30
T.A.G. Marine Sdn Bhd, the operator of Malaysia's first designated ship-to-ship (STS) liquid cargo port, targets to invest RM40 million in one or two years to develop its business.
Its managing director, Noormustafa Kamal Yahya, said: "We have invested RM60 million in the development of the STS system and facilities since the company's inception in 2008.
"The RM40 million would be used to buy more equipment such as tugboats, hoses and fenders," he told a media briefing at the Linggi International Floating Transhipment and Trading Hub (LIFTT Hub) in Malacca today.
T.A.G. Marine executive director, Capt Zanif Hashim, said the company achieved revenue of RM6 million last year, and it is aiming to double the amount in one or two years.
Some 80 per cent of its revenue came from the STS operations, however, the company also provides services including marine-related consultancy, marine equipment, logistic, ship repair, training on marine operations and crew management.
The LIFTT Hub, strategically located along the Straits of Malacca, has handled some 700,000 metric tonnes of liquid cargo last year, including crude oil, liquefied petroleum gas as well as fuel oil, and it plans to increase tonnage to between 10 per cent and 20 per cent this year.
Noormustafa added: "We are confident that the tonnage will grow as more oil companies, oil traders and shipping companies are aware of the availability of our services.
"Our current clients include Shell, Petronas as well as ExxonMobil, and we have also attracted interest from companies in China and Middle East," he added. T.A.G. Marine has received the Government's approval to conduct STS services through the Marine Department under the Ministry of Transport in 2006.
The company was subsequently gazetted an area measuring 45 square nautical miles (equivalent to 180 square kilometre) on the waters off Kuala Sungai Linggi here, as the port limit.
The STS operator has a capacity to cater to 12 very large crude carriers (VLCC) at one time, but is currently only utilising 20 per cent of capacity. It plans to increase this to 60 per cent this year.
Kuala Linggi was chosen not only to take advantage of the more than 80,000 ships passing through the straits annually, but also for its natural surroundings with water depth of 30 metres, good holding ground with tidal stream of less than 2.5 knots, as well as being shattered from adverse sea and wind conditions.
The port has also been put on the world's maritime map, and has earned a place in the United Kingdom-based Shipping Guides' "Guides to Port Entry", an important reference manual for the global shipping community.