KUALA LUMPUR (July 12): Straits Inter Logistics Bhd said Victoria STS (Labuan) Sdn Bhd, an indirect subsidiary of the group, has received a letter of approval (LOA) from the Marine Department Malaysia for the development of a ship-to-ship energy transshipment hub to provide and carry out liquid cargo transfer activities in Labuan.

Victoria is a 70%-owned subsidiary of Fajar Maritime and Logistics Sdn Bhd, which is in turn a 60%-owned subsidiary company of Straits Inter Logistics.

In a filing with the bourse, it said the hub will provide and carry out liquid cargo transfer transfer activities such as crude oil, marine gas oil, marine diesel oil, marine fuel oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) from ship to ship (STS) within the port limits of Victoria Bay, Labuan.

Under the LOA, Victoria will perform a comprehensive marine risk assessment, conduct research on liquefied boil-off gas vapour cloud dispersion modelling, and conduct a bathymetry survey on the depth of water level.

The unit will also prepare a report including the standard operating procedures on emergency response plan and oil spill response plan for the activities.

“The acceptance of the LOA will not have any effect on the issued share capital, and the shareholding of the substantial shareholders of Straits, as it does not involve any issuance of ordinary shares in Straits.

“However, the STS activities are expected to contribute positively to the future earnings of the group, moving forward,” it said.

Straits rose 1.5 sen or 7% to close at 23 sen today, bringing a market capitalisation of RM179.58 million.