AZRB aims for 10% MTJDA vessels usage at TBSB

January 29, 2015 12:35 am 

KUALA LUMPUR, Jan. 28 — Ahmad Zaki Resources Bhd's (AZRB) is aiming for 10 percent of vessels from the Malaysia-Thailand Joint Development Area (MTJDA) to use its bunkering services at the Tok Bali Supply Base (TBSB).

Chief Operating Officer Datuk Roslan Jaafar said this would add to the existing 90 percent of vessels from the MTJDA already using the company's bunkering services at the Kemaman Supply Base.

"The TBSB is very strategic and in three or four years time, we will see very good growth," he told reporters after the signing ceremony of a sub-lease and throughput agreement between AZRB's wholly-owned unit, Astral Far East Sdn Bhd, and TBSB here Wednesday.

Signing on behalf of AZRB was managing director Datuk Wan Zakariah Wan Muda and Astral Far East director Datuk Wan Zulkifli Wan Muda, while TBSB was represented by its chairman, Tengku Datuk Mohamad Rizam Tengku Abdul Aziz and director Ray Shankar.

The agreement will see Astral Far East developing and managing bunkering activities at Tok Bali port for 32 years.

Roslan said currently, the 10 per cent of MTJDA vessels that didn't use the company's bunkering services at Kemaman, went to Songkla, Thailand.

He said the Tok Bali port has an advantage in terms of proximity, as it is only 160 kilometres from MTJDA, compared to Kemaman which is 360 kilometres and Songkla, over 220 kilometres.

Roslan said Astral Far East would invest between RM12 million and RM15 million to build bunkering facilities, including two diesel tanks and a water tank.

He said the bunkering service at TBSB, set to commence in the next two to three months, would compliment the Kemaman Supply Base and contribute positively to the company's oil and gas (O&G) business in the second year of its operation.

Currently, the O&G business contributed between 10 percent and 20 percent to AZRB's revenue and about 50 percent of the company's profit.

TBSB chief operating officer Jim Iler said to date, the port had a wharf that could accommodates five vessels and a 5,200 square metre warehouse.

He said the company is planning to add three more warehouses to it, while the ground breaking for a three-storey office block is set for next month.

Meanwhile, in providing an update on AZRB's other businesses, Roslan said the company planned to spend between US$ 30 million and US$ 40 million to plant an additional 5,000 hectares of oil palm in Kalimantan, Indonesia.

This will bring the company's total hectarage to 10,000.

On property, he said the company was planning to launch two residential projects in the east coast this year.

He added that the company has also signed a memorandum of understanding with a major retailer to build a shopping mall in Kuantan, Pahang.

On construction, he said AZRB would continue to look for new projects and is interested in participating in phase two of the My Rapid Transit (MRT) project.

Currently, AZRB's orderbook stands at RM3.4 billion, which includes the East Klang Valley Expressway, Langat 2 Water treatment plant and My Rapid Transit (MRT) Sungai Buloh-Kajang line. (PNA/BERNAMA)

LGI/CDN

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