January 27, 2017 [The Star Online] - Felda Global Ventures Holdings Bhd (FGV) plans to invest RM25mil in Pakistan to expand its jetty operations in a bid to capture a bigger market share in that country as well as India and the Middle East.
The world’s third-largest oil palm estate operator said the investment would reinforce its position in Pakistan.
It said the investment comprised a multi-purpose tank terminal and modern warehouse facility to support its liquid cargo terminal (LCT) operations in the country.
On the multi-purpose tank terminal, FGV group president and chief executive officer Datuk Zakaria Arshad said FGV’s unit in Pakistan, FWQ Enterprises Pte Ltd, is building a 30,000-tonne terminal to handle and store liquid products such as ethanol, molasses and edible oils.
“The move also serves as a launch pad for FGV to enter the Balkan countries,” he said.
Zakaria said FGV expected the multi-purpose tank terminal to cost RM13mil and that the first 15,000 tonnes storage tanks had been installed in June 2016, with the remaining 15,000 tonnes would be completed in 2017.
He added that the terminal tanks could increase its capacity to 38,300 tonnes to meet rising demand.
Currently, FGV owns and operates the world’s largest edible oil terminal operator with a total capacity of 865,000 tonnes.
Once fully operational, the bulking facilities in Port Qasim, Pakistan, will complement FGV’s existing bulking facilities in Malaysia and Indonesia for a combined capacity of 900,000 tonnes that will strengthen its global presence, widen its network as well as bolster its entire value chain.
FGV said it has invested RM80mil in Pakistan year-to-date.
In 1993, FGV formed its first joint venture in Pakistan with the country’s largest refinery of edible oil, Westbury Group, for the handling and storage of palm oil and other edible oils and port infrastructure jetty project of LCT at Port Qasim. Under the partnership, FGV has a 65% stake and the balance is held by the Westbury Group.
The LCT in Port Qasim can handle vessels of up to 35,000 tonnes and it is the only dedicated LCT for edible oil vessels.
FGV said almost 98% of edible oil imported to Pakistan came through the LCT and 45% of it through FGV’s bulking tanks.
Zakaria said FWQ also planned to build a modern warehouse on 2.023 ha to be acquired near Port Qasim with an estimated cost of RM12mil.
“Both projects will be funded internally and we are confident the projects will generate excellent returns in view of the strong demand at Port Qasim,” he said.
