PETALING JAYA: Straits Inter Logistics Bhd has entered into an agreement with Labuan Port Authority in relation to the operation and facility management for the Labuan Liberty Terminal.
The contract is for a period of six years starting from April 1, 2020.
According to its press release, the contract will be undertaken by its 51%-owned associate company, Megah Port Management Sdn Bhd. LPM Holdings Sdn Bhd holds the remaining 49% stake in Megah Port.
Straits Inter Logistics director Tan Sri Mohd Bakri Mohd Zinin said the new contract serves as an opportunity for the company to venture into the port management services, which will complement its existing business of oil trading and bunkering services.
It had proposed the business diversification in January, which is subject to shareholders’ approval.
Currently, its 55% owned subsidiary, Tumpuan Megah Development Sdn Bhd operates in eight ports in Malaysia, all of which are licensed under Petroleum Development Act 1974 for its bunkering services.