Dialog unit leases land, buys tank terminal from JCorp

FILE PHOTO - An oil pipeline is laid next to the Vopak-Dialog oil storage facility (R) and a Refinery and Petrochemical Integrated Development (RAPID) project construction site in Pangerang in Malaysia's southern state of Johor October 6, 2015. REUTERS/Edgar Su/File Photo

KUALA LUMPUR: Langsat Terminal (Three) Sdn Bhd, a wholly-owned subsidiary of Dialog Terminals Sdn Bhd, will lease two parcels of land in Tanjung Langsat, Johor, for 30 years and purchase a tank terminal facility from Johor Corp for RM153mil.

Dialog Terminals is wholly-owned by Dialog Group Bhd.

In a filing with Bursa Malaysia, Dialog Group said Langsat Terminal and Johor Corp on Friday entered into a RM62mil lease agreement for the land, measuring 7.28ha and 6.87ha each, as well as a sale of facilities agreement to purchase a tank terminal located on the land for RM91mil.

It said these transactions would pave the way for Dialog Terminals to expand its tank terminal storage capacity and operations at Tanjung Langsat, given the fact that the two pieces of land were situated next to the company’s existing tank terminal facilities.

The additional land could support the development of additional storage tanks of about 300,000 cu metres (cbm), bringing Dialog Terminals’ aggregate tank terminal storage capacity at Tanjung Langsat to more than 900,000 cbm.

“The proposed transactions are expected to be completed within three months,” Dialog Group said.

Meanwhile, Dialog Group also announced the appointment of Teo Seow Ling as chief executive officer (terminals business) of Dialog Terminals.

Teo has more than 19 years of extensive experience in both operation and general management of bulk liquid terminals. - Bernama