KUALA LUMPUR (Aug 2): Straits Inter Logistics Bhd said its unit Victoria STS (Labuan) Sdn Bhd has received approval from the Marine Department to develop an integrated offshore ship-to-ship (STS) transhipment hub within the port limits of Victoria Bay, Labuan. 

Victoria STS is a 70% owned subsidiary of Fajar Maritime and Logistics Sdn Bhd, which in turn is a 60% owned subsidiary of Straits.

“The company has mobilized its resources and infrastructure in preparation to commence operation of the STS Transhipment Hub in the fourth quarter of 2021,” Straits said in a statement today.

The oil trading and fuel bunkering service provider said Victoria STS has also received approval from the Marine Department on the marine risk assessment.

The assessment, it said, was done as part of the requirements to be complied before Jan 8, 2022 to develop the hub.

“The company expects to commence and complete the development of the STS Energy Transhipment Hub, which includes setting up the key facilities and equipment such as tugboats, pneumatic fenders, LNG cryogenic equipment and single point mooring system by the fourth quarter of 2021,” it said.

Straits said the hub will be its flagship energy project which will be located within the port limits of Victoria Bay deep water area spanning 3,309 hectares, supporting an initial six STS berths with safe water depths of up to 30 metres.

“The development will advance the introduction of state-of-the-art multi-functional energy transhipment facilities that will be able to accommodate LNG carriers up to the size of a Q-Max and Very Large Crude Carrier,” said Straits.

Noting that Victoria Bay is strategically located along international shipping and energy trade routes, Straits said the proposed hub is set to be one of the largest offshore LNG and LPG energy transhipment hubs in Asia.

The hub, it added is also strategically located within the vicinity of Labuan Liberty Port, which is managed and operated by Megah Port Management Sdn Bhd (MPM), a 51%-owned subsidiary of the group.

Straits said since its announcement on July 12 on the hub, it has received numerous enquiries from both international and local entities that are interested in partnering the group to develop the hub into Asia’s largest STS Transhipment Hub.

“We are engaged in discussion with many parties in preparation for this project and Straits is gearing to kickstart this within the next few months. The other entities within the Straits Group will also stand to benefit from the business spin-offs of this project,” said Straits Group managing director Datuk Seri Ron Ho Kam Choy.

Shares of Straits rose half a sen or 2.5% to 20.5 sen today, giving the group a market capitalisation of RM160.06 million. The counter saw 6.99 million shares traded.