KUALA LUMPUR (Oct 9): Centralised Terminals Sdn Bhd (CTSB), which is 55:45 owned by Dialog Group Bhd and MISC Bhd, has commenced arbitration proceedings against Tanjung Langsat Port Sdn Bhd (TLPSB) — a wholly-owned unit of Johor Corporation Bhd (JCorp) — on Oct 8.
In separate filings with Bursa Malaysia today, Dialog and MISC announced the claim would be filed through Langsat Terminal (One) Sdn Bhd (LT-1), which is a 80%-owned subsidiary of CTSB.
LT-1 is the owner and operator of the tank terminal facility for the handling, storage and processing of petroleum and petroleum-related products located at Tanjung Langsat, Johor Bahru.
As for TLPSB, it holds a license by the Johor Port authority to carry on the business of operating and managing the Tanjung Langsat port in Johor.
LT-1 is claiming for TLPSB’s breaches of its obligations to provide a minimum draft of 16.5 meters at the approach channel, in order that the partially-laden Very Large Crude Carriers would be able to access and berth at the port.
The commencement of arbitration proceedings against TLPSB, is in relation to the recovery of losses and damages suffered by LT-1.
According to Dialog and MISC, LT-1’s losses and damages are to be assessed, and the arbitration has been referred to the Kuala Lumpur Regional Centre for Arbitration.
The arbitration proceedings are pursuant to the provision of the Concession Agreement dated April 12, 2007, and Deed of Novation dated June 21, 2007.
Both Dialog and MISC are of the opinion the arbitration proceedings are in the best of interest to preserve LT-1’s rights to commence arbitration, under the provision of the Concession Agreement.