Biodiesel Seen To Asset Edge at Kuantan Port


wong-soon-fahGlobal uncertainty will continue to impact Kuantan Port throughout 2006. Last year, we registered almost the same volume recorded in 2004 i.e. 9.4 million tonnes. However, as the new year beckons, Kuantan Port is cautiously positioning itself and is optimistic that it will be better than 2005.

“Strategic positioning will continue ti be Kuantan Port Consortium Sdn Bhd (KPC) primary marketing focus. The four key areas include petrochemical, ASEAN automotive trade hub, China trade and palm oil. The strategic positioning of each of these key areas id calculated upon KPC’s strength and competitive advantages over other local ports. Each of these areas is also carefully formulated to be in line with the national and east coast states economic growth trend,” said Wong Soon Fah, COO of KPC.

He added that, ” The palm oil industry is a clear national core competency. It is one of the pillars of the Malaysian economy, accounting for 27% of the world’s largest producer of palm oil, contributing 58% of the world’s production. Malaysia’s R&D is way ahead of the competition, with more than 300 patents registered. The state of Pahang also has one of largest palm oil plantation in the East Cost stood at 2,416,004 tonnes or 33% of Peninsular Malaysia’s total CPO production”.

Among many of its uses, palm oil is also said to be one of the most promising renewable energy source. The depletion of fossil fuels, coupled with the increasing awareness of environmental protection, has led to concerted and escalating efforts in search for a renewable and environmentally friendly alternative energy source and biodiesel is the result. Biodiesel is a clean burning alternative fuel derived from a blending process of processed liquid palm oil and petroleum diesel which can be used in compression ignition engines ir diesel engines.

Biodiesel is the term refers to methyl esters of long chain fatty acids made using an alcohol like methanol and a chemical process that separates glycerin and methyl esters (biodiesel) from fats or vegetable oils such as palm oil, rapeseed oil, and soy bean oil. Biodiesel is cleaner as it does not emit toxin, does not contain sulphur, and has lesser carbon monoxide. Using biodiesel could reduce environmental pollution by between 75 percent and 90 percent and provide better engine lubrication as compared to petroleum diesel.

Biodiesel have become increasingly popular in recent years amid concern over the world’s diminishing oil and gas reserves and as countries try to reduce their dependence on imported fossil fuels. In Malaysia, biodiesel will be fully commercialised and ready for general use from January 1, 2007. High demand of biodiesel from countries like Italy, Germany, South Korea, Columbia and India has inspired palm oil companies in Malaysia to embark on the production of this highly touted renewable energy.

The COO mentioned that,”As at November 2005, already nine companies were issued with approved license to produce biodiesel and two are located at Gebeng and Kuantan Port Industrial Area. The location chosen was partly due to the fact that the plant must be close to an export point to save on logistics costs. Kuantan Port Industrial Area has string advantages in terms of the availability of palm oil and its downstream oleochemical activities as well as other raw materials to produce biodiesel. Its existing facilities such as the availability of pipe rack facility, tank farms, dedicated palm oil berth and liquid chemical berths also compliments the whole set up”.

“For those who are planning to set up a biodiesel plant, rest assured that Kuantan Port is ready to receive you. We have proven track record in promoting investments in the petrochemical and palm oil industries and presently handles over 3 million tonnes of liquid cargo annually. To further enhance and to make Kuantan Port an attractive site, an additional berth will be constructed with land adjacent for tank farms for storage”. remarked Wong.

By: Kuantan Port Consortium Sdn. Bhd.

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