Malaysian Bunker Player to Ease Bottlenecked Bunker Supply in Labuan

by Ship & Bunker News Team
Thursday November 20, 2014

Malaysia-based Asian Supply Base (ASB) said that its partnership with Tumpuan Megah Development Bunker Sdn Bhd (TMD) will help ease bottlenecked bunker supply in the Port of Labuan, reports Malaysian press. 

"With the timely arrival of TMD Bunker, it would enhance our cost effectiveness and efficiency as the sole integrated logistics hub of the oil and gas industry," said ASB CEO Dato' Harris Tan

ASB had previously struggled to serve the approximately 800 vessels berthing at Labuan per month, despite increasing its number of berths to 18 vessels. 

The deal will see ASB continuing to handle ships at berth, while TMD will offer five bunkering vessels to supply ships at sea. 

"The days of clients coming to us is over, we have to go out to them," said Tan. 

"Furthermore, we don't have enough land to build mega tanks with a capacity of 2,000 tanks."

On TMD's part, the partnership stands to increase the company's bunker sales to 25 million litres, in addition to raising its turnover to RM400 million ($119 million) per year. 

"The size and potential of business is huge compared to Kemaman, which serves 250 ships compared to 800 in Labuan," said TMD Director Tan Sri Dr Jason Goh Teck Chai.

Many of the customers coming to Labuan, he said, are also ships that the company serves at the Port of Kememan, where it has operated since 2010.