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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

05/04/2001

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

NULL

CATEGORY

HEADLINE

Fima Bulking to supply Tenaga with storage tanks f
Fima Bulking to supply Tenaga with storage tanks for palm oil04 April, 2001, Business Times - FIMA Bulking Services Bhd has joinedTenaga Nasional Bhd and the local palm oil industry's initiative to powerup generators with crude palm oil (CPO), a Government-initiated action toboost the commodity's consumption.The company signed a pact with the Malaysian Palm Oil Board (MPOB)yesterday to supply CPO tanks for storing the commodity that will beutilised by the power company.The pact is effective this month.With the renting of tanks in Butterworth and Port Klang, the necessarylogistical arrangements for CPO burning scheduled for April 12 at Tenaga'spower plant in Prai is in place.Under the agreement Fima will provide storage space for 13,600 tonnes ofthe commodity, of which 10,000 tonnes will be made available in Port Klangand the remainder in Butterworth.The Primary Industries Ministry said in a statement released in KualaLumpur yesterday that the rental rates charged by Fima are flexible andnot commercially oriented.The first consignment of CPO by a consortium of 10 plantation companies,total-ling 2,000 tonnes, was delivered yesterday.It will then be sent to the Prai station and blended in the vessels withmedium fuel oil, a diesel variant.Fima Bulking Services managing director Yap Man Chan said the companycharges the Government RM12 for a tonne of CPO stored."The rates are fixed regardless of companies and market prices of palmoil," he told Business Times.He added that Fima will continue to provide the tanks for the purpose ofburning CPO for as long as the project requires since it is a formergovernment body."We are willing to sacrifice a bit for the good of the industry as a wholein the near future," he said.Fima Bulking, formed in 1979, was the former government body FoodIndustries Marketing Authority (Fima) which was corporatised in 1982.Kumpulan Guthrie, and other refiners who had no storage facilities.It was then bought over in 1995 by Kumpulan Fima.Kumpulan Fima consists of Fima Bulking Services for the storage of palmoil and oleochemicals, Fima Chem Sdn Bhd for the storage of industrialchemicals and Fima Liquid Sdn Bhd for the storage of latex.The company has 185 tanks with a capacity of 200,000 tonnes of storagespace.Of that, between 80 and 90 tanks are for palm oil and oleochemicals with acombined capacity of 100,000 tonnes.