GELANG PATAH: The Government will save RM150mil to RM200mil a year with the construction of the petroleum hub in Tanjung Bin.
This is because the country will no longer have to rely on Singapore and pay double handling as well as cross-harbour costs.
Johor Mentri Besar Datuk Abdul Ghani Othman said, at present, the country imported petrol and diesel, mostly from Singapore.
This involves government subsidies, and RM150mil to RM200mil can be saved when these are sent directly to the petroleum hub, he said, adding that Iskandar Malaysia would be a petroleum products supply and distribution centre in the region.
He was speaking to reporters after the opening of Asia Petroleum Hubs (APH) RM50mil multi-purpose fabrication and supply base in Iskandar Malaysia by Tengku Mahkota of Johor Tunku Ibrahim Ismail Iskandar.
The fabrication yard and supply base is designed to support the construction of its RM1.5bil petroleum hub on 40.5ha of reclaimed island in Tanjung Bin, scheduled for completion at the end of next year.
Abdul Ghani said the hub would blend, store and supply petroleum products for the region, adding that it would also have other spill-over effects, including those related to maritime, shipbuilding and ship repair as well as insurance, thereby increasing job opportunities.
KIC chairman and chief executive officer Abdul Rashid Mohd Isa Al-Qadiry said that piling work on Tanjung Bin was progressing according to schedule.
The Tengku Mahkota said the project would ensure that petroleum products were brought into the state at competitive rates.
Did you find this article insightful?