Dialog Group Bhd and The Netherlands-based Trafigura Beheer BV are to jointly develop an independent centralised tankage facility (CTF) and a dedicated tank terminal in Tanjung Langsat Port (TLP) in Johor. In a filing with Bursa Malaysia yesterday, Dialog said it had, through unit Dialog Equity Sdn Bhd, secured a 30 year concession agreement with the Tanjung Langsat Port authorities for the development on 20.2ha. The tank terminal has a storage capacity of about 400,000 cu m of petroleum and related products. It will cater to the storage, blending and distribution of these products. The CTF will consist of shared pipelines, drumming, truck loading/unloading, waste treatment and additional distrobution facilities. The land would be leased to Dialog Equity for RM38.1 mi, the company said, adding that the lease payments would be made thorugh internal funds and bank borrowings. The build-own-operate-transfer development would see the setting up of a joint-venture company, in which Dialog would hold an 80% stake, it said. Also, the tank terminal will be leased to Trafigura for its exclusive use on a fixed monthly rental, which has yet to be finalised. Dialog said Dialog Equity was in talks with other potential customers on the lease of additional storage capacity or tank terminals to be set up in the port area. It said the project was one of six nominated services sited within the Iskandar Development Region. Global energy trader Trafigura is involved in the supply and offtake of crude oil, petroleum products, liquified petroleum gas, metals and metal ores and concentrates. The group has been recording annual revenues of US$45 bil. OSK Securities analyst Chris Eng said the development was within expectations for Dialog, catering to the growing demand for tank farms from industry players. "As an additional facility in the country, it will give contest to Singapore, which has been providing such services to players," he said. Based on the size of the facility, which was similar to Dialog's facility in Kertih, Terengganu, Eng said the cost of setting up the Tanjung Langsat facility could be RM1 bil. | 
