Malacca's ambitious MYR12.5bn ($2.81bn) oil tank storage and drydocking project at Kuala Linggi International Port (KLIP) is confirmed to be going ahead with local media reporting that construction will begin in the first quarter of 2017, with a 10-year timeframe for full completion.

Local partner TAG Marine, which is financing the project with Chinese investors, was optimistic about KLIP's prospects. Md of TAG Marine, Noormustafa Kamal Yahya said, however he hoped the port would attract more investors, while declining to reveal the ownership structure.

Noormustafa noted that Kuala Linggi has a natural draft of 30 m making it suitable to service large tankers, without the need to keep dredging.

He has his sights set firmly on taking a portion of the tanker trade from Singapore, claiming vast previous experience that has culminated in the KLIP project.

“My company has been servicing large ships for the past 10 years handling palm oil, crude oil, liquefied natural petroleum, liquefied natural gas (LNG) among others. We are also the first in the region to handle LNG transfer from ship to ship," he said.

“The Transport Ministry has gazetted KLIP not only as a industrial port and a bunkering hub, but also a port of refuge to aid casualty and vessel in distress,” Noormustafa said.

Source: seatrade-maritime.com