FGV adds storage tanks amid heightened demand

Four tanks are located in Pasir Gudang with a combined 10,400 tonnes of storage and the other 2 tanks (5,200 tonnes) are in Port Klang


FGV Holdings Bhd has expanded its bulking facilities through the additional 15 new vegetable oil storage tanks totalling 35,600 tonnes located in Johor and Selangor to cater to the increasing market demand as well as to support the national B20 biodiesel programme.

The planter, which is one of the largest producers of crude palm oil, said out of the six tanks that are already in operation, four tanks are located in Pasir Gudang, Johor, with a combined 10,400 tonnes of storage and the other two tanks with a combined 5,200 tonnes of capacity are located in Port Klang, Selangor.

The group added that it is currently constructing the remaining nine tanks in Tanjung Langsat, Johor, that are expected to be completed by the third quarter of 2021.

The group said the nine storage tanks will have a combined capacity of 20,000 tonnes.

FGV operates its bulking and storage facilities through its subsidiary, FGV Johor Bulkers Sdn Bhd (FJB), which handles 25% of Malaysia’s total palm oil exports.

The subsidiary provides ample tank space solutions for international vegetable oil traders to effectively conduct business globally.

Its group CEO Datuk Haris Fadzilah Hassan (picture) said the additional tanks signal the group’s expertise in handling edible and non-edible vegetable oil products as they are complemented with a fully computerised system, stringent quantity and quality controls, strict security and safety measures and comprehensive receipt-storage-dispatch facilities.

“FJB is one of the most well-equipped terminals that are handling all types of storage and cargo movement needs,” he said in the statement.

Moving forward, Haris Fadzilah said the group plans to expand its bulking business globally and is currently exploring the most viable options.

FGV owns one of the world’s largest storage facilities for vegetable oils with a total capacity of more than 1.1 million tonnes through 12 liquid terminals located in Malaysia, Indonesia and Pakistan.

The group said FJB is expected to handle more than 80,000 tonnes of basic chemicals per year at its dedicated facilities in Tanjung Langsat by 2021 as the demand increases.

“In 2019, FJB marked a historical moment when the company ventured into the handling of basic chemicals in line with its strategy to expand the group’s business beyond vegetable oils.

“The subsidiary also operates two warehouses for the storage of palm kernel expellers (PKE), palm kernel shells (PKS) and grains,” it said.

The warehouses are located in Pasir Gudang, Johor and Kuantan, Pahang with area sizes of 252,683 sq ft (23,475 sq m) and 179,611 sq ft respectively.

It said a new warehouse with a 59,200 sq ft area for dry cargo will also be constructed in the Pasir Gudang port area and is expected to be completed by 2021 to fulfil demands from local and neighbouring countries.

“FJB acts as a one-stop independent centre for storage and handling of vegetable oils, oleochemicals, biodiesel, PKE, PKS, grains and basic chemicals through vessels, road tankers and pipelines in all major ports including Pasir Gudang, Tanjung Langsat, Port Klang, Kuantan, Lahad Datu and Sahabat, Sabah in Malaysia and Palembang in Indonesia.

“FJB is accredited with ISO 9001 (Quality Management), ISO 22000 (Food Safety), ISO 14001 (Environment), OHSAS 18001 (Safety), ISO/ IEC 17025 (Laboratory), ISCC (Carbon Control), GMP+ B3 (Warehouse) and is certified as Halalan-Toyyiban and KOSHER,” it said.