Malaysia’s MMC anticipated to undertake Yan’s ship-to-ship transfer business

The utilities and infrastructure corporation, MMC Corp Bhd, is expected to undertake ship-to-ship transfer (STS) operations in Yan, Kedah, as opposed to the earlier speculations of the group undertaking port operations.

The Andaman Port Sdn Bhd is the entity that is expected to undertake the ship-to-ship transfer (STS) operations. The Andaman Port Sdn Bhd is a subsidiary of MMC Port Holdings Sdn Bhd, whose parent organization is MMC Corporation.

“Ship to ship transfer (STS)” usually involves the transfer of cargo either in dry bulk or liquid form. The most common operation of STS is seen with oil tankers when two tankers positioned alongside transfer oil cargo while moving in the same direction or staying anchored at a position. In the maritime trade, bunkering and refueling make up a large portion of STS operations trade.

Regarding the takeover of STS operation, a port official stated that it doesn’t make sense for a company to operate two ports - Penang port Sdn Bhd and a port in Yan, in such close proximity. He further added that the decision of undertaking the new port at Yan would have made sense if Penang Port (Pulau Pinang) was saturated with no room for expansion left. Penang Port still has vast expansion opportunities therefore investing in its expansion will be a much simpler and smarter business decision.

The speculation on the port in Yan being operated by MMC was sparked when on 10th May 2021, the Malaysian Transport Minister Datuk Seri Wee Ka Siong announced that a new area in Yan has been gazetted as a federal port. With MMC being the largest port operator in the country, operating four large terminals and a smaller terminal in Melaka, it was assumed that MMC will be taking over the port operations in the new port.

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