World’s largest STS transfer hub under development

Apr 05 2019


KA Petra, a Malaysian ship-to-ship (STS) transfer specialist, has signed a Heads of Agreement (HOA) with Hutchison Port Holdings to jointly develop the world’s largest STS transfer hub in the country.

Under the terms of the HOA, KA Petra will have a 70% interest in the project, whilst Hutchison Ports will take a 30% stake.

Based on preliminary studies, construction of the STS hub is estimated to cost $150 mill to $180 mill, and will be funded by a combination of internally generated funds and debt financing. Construction will be undertaken in phases with commencement within the next 12 months.

Dato’ Shahrul Amirul, KA Petra executive chairman, said, “We embarked on the STS hub idea two years ago, and through the grace and assistance from the Government of Malaysia, our partner Hutchison Ports, our engineering and technical partners, and our very own KA Petra team, we are now realising the STS hub dream.”

Eric Ip, Group Managing Director of Hutchison Ports, said, “We are equally excited to be part of this significant project that will have such a positive impact on the marine sector in Malaysia, as well as in Southeast Asia.

“Given our global port network, we are confident of introducing the many benefits offered in this STS hub to our global shipping lines customers. This would be one of our valued propositions as a strategic partner with KA Petra in undertaking the development of the world’s largest STS hub in Malaysia,” he said.

According to Shahrul, the STS hub and the related businesses will create job opportunities that is expected to attract many highly skilled Malaysians who are currently working overseas to return to Malaysia to provide skills and training to the next generation of professionals in the maritime industry.

Shahrul commented that the STS Hub will have the capacity to store over 9 mill tonnes of petroleum products, and with the IMO 2020 approaching, the hub will be well positioned to become a major trading area in the region.

The hub will be located in the Johor Bahru Port waters spanning an area of 2,800 acres. It will consist of 31 berths, making it the largest in the world and will be the world’s first fully dedicated STS transfer facility.

It will be fitted with a state-of-the-art dolphin mooring and berthing facilities, which will allow vessels to transfer liquid cargoes, such as crude oil, fuel oil, gas oil, LNG and other petroleum-based products.

 



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