Malaysia’s recently revived Asia Petroleum Hub (APH) project awarded China Railway Engineering Corporation (CREC) a $400m contract for the construction of the oil terminal, local reports said.
Smart Crest has signed a framework agreement to award the engineering, procurement and construction (EPC) to CREC, with Fajarbaru Builder as the local joint venture partner in charge of civil works.
“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,” said APH ceo Lim Kian Boon .
Lim said CREC would be responsible for the construction of the terminal on a turnkey basis. “Construction is likely to begin in the third quarter of this year and expected to be completed within 18 and 24 months,” he added.
The APH would provide transhipment and storage facilities, and serve as a strategic hub to break-bulk, make-bulk, blend and redistribute petroleum products to domestic and regional markets.