China Railway Engineering (CREC) has won a $400m engineering, procurement and construction (EPC) contract from Smart Crest to build the oil terminal of the Asia Petroleum Hub (APH) in Johor, Malaysia.
Fajarbaru Builder will serve as the local joint venture partner responsible for civil works.
APH CEO Lim Kian Boon said: “We have not defined the percentage of the joint venture yet, because the project is already 60% completed when I took over, so we are not sure how much local content is left.”
Construction of the terminal is expected to commence in the third quarter of 2017 and be completed within 18 to 24 months’ time, Boon stated.
The oil terminal will be constructed on a 40-hectare island in Johor. It will include trans-shipment and storage facilities, and will serve as a hub to break-bulk, make-bulk, blend and redistribute petroleum products.
The project, which initiated in 2007 with CIMB funding, ran into financial difficulties in 2010. Smart Crest bought it from CIMB in 2016.