Integrax ... May11

Vale Intl SA is now looking to construct its own jetty in Lumut following the lapse of its conditional transshipment services agreement with Integrax’s 80% owned unit, LBTSB.

 

Sources say Vale has called for bids for the construction of the jetty as well as supply of material handling equipment. The contract is said to be rm600 million - rm800 million. It is learnt that there are currently four bidders – including Muhibbah Engineering and Kencana Petroleum.

 

Besides the construction of the jetty, other aspects of the port such as onshore works have drawn interest from local and foreign companies.

 

Vale has 409 acres of land next to Lumut Port that is slated to become rm9 billion iron ore distribution centre.

 

Given that Vale is still trying to find a way to build its own jetty and has additional capacity coming onstream, Integrax may attempt a second shot at securing a contract with Vale. Integrax Bhd wants to revive its transshipment deal with Brazil 's Vale International SA, following the resignation of its director and chief executive officer (CEO).

Nonetheless, Vale would still need to get consent from Integrax if it were to build its own jetty at Lumut as LBTSB holds a concession to operate within a 30km radius of the port.

 

Industry observers say Integrax could provide cheaper and quicker solution for Vale, given that it already has the infra in place and only needs to furnish it.

 

However, Integrax’s plans may not take off so soon as the boardroom tussle still stands in its way. With the emergence of Tenaga in the Integrax tussle, it remains to be seen if the port operator will be able to move forward with its plans or if the deadlock will continue.

 

Integrax plans to invest up to RM400 million over the next three years for its expansion.
Integrax owns and operates ports in Lumut, namely Lumut Maritime Terminal Sdn Bhd and the Lekir Bulk Terminal Sdn Bhd (LBT).

 

Former director and CEO Harun Halim Rasip, who is also Amin's elder brother, had sold his entire 22.12 per cent stake in Integrax to Tenaga Nasional Bhd (TNB) for RM106 million. This saw the entry of TNB as a major shareholder of the company. Tenaga is mulling a second nominee to the board.

The brothers had reportedly been at loggerheads over the company's direction, especially with regards to the 10-year interim contract from Vale. While Amin wanted to pursue the contract, Harun opposed the idea, as the cost of setting up a facility for Vale would be in the region of RM280 million, with no certainty of securing another client the size of Vale.

The offer has since lapsed and the Perak government has agreed to allow Vale to construct its own jetty in Lumut to accommodate its proposed iron ore transshipment project.

The plan is to build an eco industrial zone around LBT, which would be a multi-user facility catering to limestone, coal, biomass, cooking oil and palm oil.

 

At present, much of Integrax’s revenue comes from LBT’s handling of coal for Tenaga’s Janamanjung plant. The tender for Tenaga’s