Malaysia Launches US$ 180 Million STS Facility in Johor

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  • US$180 million project off Johor’s Port of Tanjung Pelepas, enabling ships to transfer their cargo to other vessels without having to dock at the piers.
  • The 1,200-hectare facility, will allow higher shipping flexibility and cut costs for shippers and can accommodate up to 30 vessels at one time.

Malaysia launches project for ship-to-ship transfers in Strait of Johor, reports The Straits Times.

Cost effective project

Malaysia is developing a US$150 to US$180 million (S$204 million to S$244 million) project off Johor’s Port of Tanjung Pelepas. This project will enable ships to transfer their cargo to other vessels without having to dock at the piers.

The new hub will have man-made “dolphin” mooring structures to berth vessels without the need for piers or docks, and at lower costs for shippers.

This is a move that officials say will allow higher shipping flexibility and cut costs for shippers.

World’s biggest and cost effective facility

The project, in the Johor Bahru port waters, is billed as the “world’s biggest” ship-to-ship (STS) transfer facility.

The 1,200-hectare facility, an area more than three times the size of Sentosa island, will be built in the Strait of Johor facing Tuas, and won’t encroach into Singapore waters.

It will be able to accommodate up to 30 vessels at one time.

The project launch

Prime Minister Mahathir Mohamad witnessed the project’s signing ceremony on Tuesday (April 2) in Putrajaya, involving Malaysian maritime services company KA Petra and Hong Kong-based port operator Hutchison Ports.

KA Petra on its website says ship-to-ship transfer involves “cargo transfer operations between 2 seagoing vessels, either while stationary or underway.”

Hutchison Ports, which will take a 30 per cent stake in the project, is among the biggest port operators in the world and owns a stake in Port Klang.

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Source: Straitstimes