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Thursday, June 20, 2013

Integrax may gain if TNB wins


KUALA LUMPUR: Integrax Bhd, which owns and operates Lumut Port in Manjung, Perak, hopes Tenaga Nasional Bhd (TNB) will secure the 1,000MW Track 3A power plant tender being evaluated by the regulators.
This is because Integrax stands to benefit from the additional coal cargoes that would pass through Lumut Port to TNB’s power generation complex in Manjung, according to deputy chairman Amin Halim Rasip.
“We would like for TNB to get it (the contract). We have done our best to offer the most competitive price to TNB to enable it to put in a good bid. The Manjung complex is the best in terms of efficiency as it was reclaimed to be an island for power plants. The infrastructure is already there, which means the incremental cost would be lower,” he told reporters at a post-AGM briefing yesterday.
TNB is reportedly the frontrunner for the brownfield coal-fired Track 3A project, for which only TNB, in a joint venture with Japan’s Marubeni Corp, and a 1Malaysia Development Bhd-Mitsui & Co partnership are still in the running.
The national utility company is believed to have submitted a bid of 22.78 sen/kWh, two sen below 1MDB’s 24.86/kWh.
TNB is Integrax’s single largest client and also holds a 22% stake in the transshipment services provider.
Integrax’s Lekir Bulk Terminal (LBT) handles the unloading and delivery of coal for TNB’s Sultan Azlan Shah Power Station in Manjung, where the latter has three coal-fired plants with a combined capacity of 2,100MW.
TNB is also building a fourth extension there, dubbed Manjung 4, involving a 1,010MW coal-fired facility. Manjung 4 is expected to boost LBT’s coal-based throughput by three million tonnes to nine million tonnes once the plant is operational in 2015.
On a separate matter, executive director Azman Shah Mohd Yusof said Integrax was still in talks with Brazilian iron ore giant Vale International SA to provide transshipment services. An agreement had been mooted in December 2009 but it was complicated by a shareholder tussle within Integrax, which has since been resolved.
“The potential is huge. Vale doesn’t just need iron ore, but other commodities as well,” Azman said without specifying a timeline for the negotiations to conclude.
Amin stressed that the growth of Lumut Port did not rest on Vale alone. “Perak is a resource-based state. The movement of limestone, biomass, fertiliser, coal and other natural resources is poised to grow. These commodities are still under-served relative to the demand.
“The goal is for Lumut Port to act as a ‘logistics hotel’ where all types of cargoes can be handled, dry as well as liquid. If viable, we also plan to introduce value-added services such as blending and storage.
“What we have been doing thus far is basically trucking but we want to move to a global industrial scale. If you set up the ‘warung’, people will come,” he said.
Integrax is targeting to double its throughput by 2020 to 20 million tonnes from 10.16 million tonnes as at last year.
The firm also plans to position Lumut Maritime Terminal (LMT), the second of its two terminals, as a hub for liquid cargo and selected high-value dry bulk.
Other kinds of dry bulk would be redirected towards LBT, which can handle this type of cargo 10 times faster than LMT given its infrastructure, Amin said.

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