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April 5, 2019, 4:25 p.m. EDT

Hong Kong : Ka Petra Signs Heads of Agreement With Hutchison Ports to Jointly Develop the Worlds Largest Ship-to-ship Transfer Hub

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Apr 05, 2019 (Euclid Infotech Ltd via COMTEX) -- KA Petra Sdn Bhd (KA Petra or the Company), Malaysias pioneer and leading Ship-to-Ship (STS) transfer specialist, signed a Heads of Agreement (HOA) with Hutchison Port Holdings Limited (Hutchison Ports) as a strategic partner to jointly develop the worlds largest Ship-to-Ship Transfer Hub in Malaysia.

Under the terms of the HOA, KA Petra will have 70% interest in the project, whilst Hutchison Ports will take a strategic 30% stake. Based on preliminary studies, construction of the STS Hub is estimated to cost USD150 million to USD180 million, and will be funded by a combination of internally generated funds and debt financing. Construction will be done in phases with commencement within the next 12 months.

The signing ceremony was formally witnessed by Yang Amat Berhormat Tun Dr. Mahathir bin Mohamad, Prime Minister of Malaysia and Yang Berhormat Tuan Anthony Loke, Minister of Transport of Malaysia. Also present were Yang Berhormat Dato Seri Mohamed Azmin Ali, Minister of Economic Affairs and Yang Berhormat Datuk Seri Saifuddin Nasution bin Ismail, Minister of Domestic Trade and Consumer Affairs. KA Petra was represented by its founder and Executive Chairman, Dato Shahrul Amirul, whilst Hutchison Ports was represented by Mr. Eric Ip, Group Managing Director of Hutchison Ports.

Dato Shahrul Amirul, Executive Chairman of KA Petra Sdn Bhd said, We embarked on the STS Hub idea 2 years ago, and through the grace and assistance from the Government of Malaysia, our partner Hutchison Ports, our engineering and technical partners, and our very own KA Petra team, we are now realising the STS Hub dream.

Mr. Eric Ip, Group Managing Director of Hutchison Ports said, We are equally excited to be part of this significant project that will have such a positive impact on the marine sector in Malaysia, as well as in SE Asia. Given our global port network, we are confident of introducing the many benefits offered in this STS Hub to our global shipping lines customers. This would be one of our valued propositions as a strategic partner with KA Petra in undertaking the development of the worlds largest STS Hub in Malaysia.

The STS Hub is poised to trigger a resurgence of the Malaysian Maritime sector, by becoming a catalyst to other related businesses in the industry.

According to Shahrul, the STS Hub and the related businesses will create job opportunities that is expected to attract many highly skilled Malaysians who are currently pursuing their trade in foreign lands to return to Malaysia; and provide skills and training to the next generation of professionals in the maritime industry.

Shahrul commented that the STS Hub will have the capacity to store over 9 million metric tons of petroleum products, and with the International Maritime Organisation implementing IMO 2020, a regulation limiting sulphur content in marine fuels, from 1st January 2020, the STS Hub will be well positioned to become a major trading hub in the region.

Overall, KA Petra estimates that GDP contributions from maritime sector activities in the STS Hub will be in the region of RM18 billion to the Malaysian GDP annually, equivalent to 1.5% of Malaysias GDP today. While some of you might be looking at the economics of the STS hub, I have always viewed this project from a nationalistic perspective. Malaysia is my home, Malaysia has been good to me, my family and to KA Petra by providing us with abundance of opportunities, and I view this STS Hub as our small contribution towards enabling Malaysia to once again rise as a powerhouse in the Maritime sector. Shahrul concluded.

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