(EnergyAsia, March 25 2014, Tuesday) — Johor state’s Tanjung Langsat Port (TLP) in southern Malaysia expects to achieve 15 million tonnes of cargo throughput in 2014 after reporting a 47.7% surge last year.

The planned start-up of two liquid berths by mid-2014 adding to the port’s existing five will help further attract oil and gas investments, said CEO Johari Shukri Jamil. The port’s main oil and gas investors now include Malaysia’s Dialog and MISC, and Switzerland’s Puma Energy jointly operate Langsat Terminal One (LGT1) and Langsat Terminal Two (LGT2).

LGT1 has the capacity to store 476,000 cbm of naphtha and other products, while LGT 2 stores up to 171,000 cbm of gasoline. Langsat Bulkers Sdn Bhd (LBSB), a full subsidiary of Felda Johor Bulkers Sdn Bhd, owns the remaining 20,800 cbm t store edible oil.

TLP has a combined capacity of about 770,000 cubic metres for oil storage, including 100,000 cbm from the port operator’s own terminal.

Puma Energy, an associate company of the commodity trading multinational Trafigura Beeher BV, expects to start up a bitumen terminal at the port in April.

Boosted by rising oil traffic, TLP said the port achieved record throughput of 11.6 million metric tonnes last year, up from 7.85 million metric tonnes in 2012. In 2011, when TLP began its transformation programme to serve the oil trade, its throughput was just four million tonnes.

TLP said it expects its dry cargo comprising steel coil, empty and full laden reels, and general merchandise to grow by 15% to 20% this year.

The number of vessels docking at the port has tripled from 252 in 2011 to 767 in 2013, making the port the country’s largest private jetty operator, said Mr Johari.

“This achievement is the direct result of our on-going business transformation to improve operational efficiency. This together with the deepening of the navigation channel for both our dry and liquid jetties has benefited the port. The team at TLP has made excellent progress in transforming the port into a niche development to cater to the needs of the oil and gas industry,” he said.

“The deepening of our navigation channel saw the docking of Suezmax class vessels.”

As a new player serving the oil and gas industry, TLP said it has been making substantial investments to increase throughput capacity to prepare for growth.
The Malaysian government has earmarked southern Johor to become a major integrated oil refinery, petrochemicals and storage hub to serve the Asia’s fast-growing markets.

As part of the initiative, the government awarded TLP the roles of developing a petroleum terminal and a support services hub in Tanjung Langsat.

“TLP benefits from numerous incentives and facilitation given by the state and Federal governments to enhance the infrastructure of the port,” said Mr Johari.