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  • FGV Holdings Berhad

FGV adds major vegetable oil tankage to fulfill Malaysia's B20 market demand

FGV Holdings Berhad owns one of the world's largest and most modern storage facilities for vegetable oils with a total capacity of more than 1.1 million metric tons (MT) through 12 liquid terminals located in Malaysia, Indonesia and Pakistan.

Photo: FGV Holdings Berhad

FGV operates its bulking and storage business through its subsidiary, FGV Johor Bulkers Sdn. Bhd. FJB handles 25 percent of Malaysia's total palm oil exports and provides ample tank space solutions for international vegetable oil traders to effectively conduct business worldwide.

Due to increasing market demand and to fulfil the government B20 biodiesel mandate for the transport sector, FGV has expanded its bulking facility by adding six new vegetable oil storage tanks. Four of the tanks are located in Pasir Gudang, Johor, with 10,400 MT capacity completed in August and two tanks with 5,200 MT capacity in Port Klang, Selangor, completed in February, are ready for use. Nine additional tanks in Tanjung Langsat, Johor, with 20,000 MT capacity are currently under construction and will be completed by the third quarter of 2021.

FGV Group CEO Dato’ Haris Fadzilah Hassan said the additional tanks attested to the team's expertise in handling edible and nonedible vegetable oil products. It complements with a fully computerized system, stringent quantity and quality controls, strict security and safety measures as well as comprehensive receipt-storage-dispatch facilities.

"FJB is one of the most well-equipped terminals to handle all types of storage and cargo movement needs," Fadzilah said. "Moving forward, FGV plans to expand its bulking business overseas and we are exploring the best options available."

In 2019, FJB marked a historical moment when the company ventured into the handling of basic chemicals in line with its strategy to expand the group's business beyond vegetable oils. By the year 2021, FJB is anticipated to handle more than 80,000 MT per year of basic chemicals at its dedicated facilities in Tanjung Langsat, Johor, as demand increases.

FJB also operates two warehouses for the storage of palm kernel expellers (PKE), palm kernel shells (PKS) and grains. The warehouses are located in Pasir Gudang, Johor, and Kuantan, Pahang, with area sizes of 252,683 square feet and 179,611 square feet, respectively. On top of that, a new warehouse with a 59,200 square-foot capacity for dry cargo will also be constructed in the Pasir Gudang port area and is expected to be completed by next year to fulfil demands from local and neighboring countries.

FJB acts as a one-stop independent center for storage and handling of vegetable oils, olechemicals, biodiesel, PKE, PKS, grains and basic chemicals via vessels, road tankers and pipelines in all major ports including Pasir Gudang, Tanjung Langsat, Port Klang, Kuantan, Lahad Datu and Sahabat in Malaysia and Palembang in Indonesia.

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