Investment Opportunities at POIC Lahad Datu

Investment
Opportunities at
POIC Lahad Datu
Bilson Kurus, Ph.D
POIC Sabah Sdn Bhd
International Joint Workshop on New Trends
In Nano-Bio Technology
th
28 November 2013, Hotel Le Meridien,
Kota Kinabalu, Sabah
• Wholly owned company of Sabah
State Government
• Established in January 2005 as the
first comprehensively developed
palm oil industrial cluster in the
world
• Catalyst in spearheading the State
industrialization efforts
• Provide basic and specialised
infrastructure
• Bridge between private and public
sectors in realising industrial
potentials
• Palm oil downstream industry to continue
as the core sector
• Two major new development directions:
Oil & Gas, Regional Logistics
• Other developments: Industrializing other
resources based sectors (eg. aquaculture,
foods, timber), clustering support sectors,
Free Trade Zone, Tender Port
Source: Yearbook of Statistics Sabah 2011
Sabah
Plantation Area
(Million Hectares)
Palm Oil Mills
(No.)
Refineries
(No.)
Palm Kernel Crusher
(No.)
1.44 (28.4 %)*
124 (28.9%)
(Capacity : 4.2 Mil.MT/Hr.)
14 (27%)
(Capacity : 7.4 Mil.MT)
14 (30.4 %)
(Capacity : 2.3 Mil.MT)
Malaysia
5.08
429
52
46
Crude Palm Oil Production
(Million Tonnes)
5.54 (31.1%)
18.79
Crude Palm Kernel Oil
Production (Million Tonnes)
0.56 (26 %)
2.16
* Percentage of National Total
Source: Malaysian Palm Oil Board (MPOB) website, www.mpob.gov.my, 2012
(POIC Standard Briefing Notes, November 2013)
For Sabah, the palm oil downstream
sector offers a significant new source
of revenue and a ready vehicle to
further expand its economic
development and prosperity.
Lahad Datu
Copyright © POIC, 2013
NATIONAL BIOMASS STRATEGY 2020
25 million tonnes of biomass
can be mobilized nationally
The East Coast of Sabah
collectively accounts for
the largest amount of
economically viable oil
palm biomass
Within this
confluence, Lahad
Datu and Sandakan
offers the greatest
potential
Population: 60 million
Strategic geographical location
~ close to South East Asia market
Strategic shipping route
~ ideal for tran-shipment hub
Land area: 1.6 mil sq km
Proximity to source of raw
materials from other regions
Kota
Kinabalu
.
Medan
Dumai
Bitung
Copyright © POIC, 2012
NO
INFRASTRUCTURE
PLANNED DEVELOPMENT
STATUS
COMPLETION
1.
Land Banks
(3,700 acres)
Phase 1 & 2: 1,150 acres
Phase 3a: 347 acres
Completed
In Progress
2.
Road
Dual Carriageway
50 metres wide
Completed
3.
Water
3 Million Gallons (11.35million
litres) in Permastore Tanks.
Completed
4
Electricity
Double Circuit Underground
cabling system.
Electricity supply up to a total of
50MW.
Completed
5.
Telecommunication
Underground cable
Completed
6.
Natural Gas Supply
RGT (Earthwork)
100 mmscfd
In Progress
NO
INFRASTRUCTURE
PLANNED DEVELOPMENT
STATUS
COMPLETION
7.
Piperacks
Provided by POIC to connect to investors’ lots
within Phase 1 to the liquid jetty.
Completed
8.
Interchange
Located within liquid terminal with boiler and
compress air facility
Pipeline are provided from interchange to berth
Completed
9.
Port Facilities
Liquid Terminal
20M draft : 500M from shoreline,2 berths
10M to 12M draft :60M – 70M from shoreline ,5
loading platforms, 600M berthing length
Dry Bulk Terminal
14M draft :2 outer berths to accommodate
vessels up to 30,000DWT
12M draft :2 inner berths to accommodate
vessels up to 10,000DWT
Proposed Container Terminal
Phase 3
15M draft
400M Length
Can accommodate vessel up to 65,000DWT
Completed
Completed
In progress
TYPE OF INDUSTRIES
NO. OF ENQUIRIES
Biodiesel
49
Storage/Warehousing &Logistics
36
Fertilizer
23
Palm Oil Refinery
23
Biomass - Pulp & Paper (2) / Bio Composite Panels (1) / Plywood (1) /
Briquettes (2) / Medium Density Boards (1) / Pulp (2) / Manufacturing
Palm Pellet/Fiber (8)/ Bio Oil (3)
20
Palm Kernel Crusher / Expeller
7
Oleochemical
6
Bulking Facilities
7
Small Renewable Energy Power Program (SREP) / IPP / Power Plant
8
Food Based (3) / Phyto-nutrients (1)
4
Downstream Processing of Palm Oil / Palm Kernel / Upstream Palm
Kernel Oil Extraction Plant
2
Animal Food-Based Products
3
Support Industries (Spent Bleach Earth, Petroleum Supplier, Packaging
Plant, Treatment Plant, Recycle of Decanter Cake), Machineries Supplier,
Wood Vinegar, Activated Carbon, Iron & Steel , Commercial & Industry
Development, Cement Plant, Research, Polyurethane products, Building
Materials & Trading etc., Oil Storage Terminal, LNG Regasification
Source: POIC Standard Briefing Notes, November 2013
83
No.
Acreage
Allocated
Purchase/Lease
Price (RM/mil)
Employment
Created
(Estimate)
Investment
Value
(RM/mil)
(Estimate)
Concluded
Sales
41
477.09
249.17
2,318
2,155.60
Lease
Agreement
3
20.22
1.27
81
217.00
Sales in
Progress
6
118.57
47.17
608
2,122.00
50
615.88
297.61
3,007
4,501.60
Total
Source: POIC Standard Briefing Notes, November 2013
1•
Raw materials: Lots of palm oil and palm
biomass. Currently very limited value
adding.
2•
Strategic project location: Centre of palm
oil belt, deep & sheltered harbour (20m
draft), 2 km from town centre.
8•
Market access: Strategic geographical
location - proximity to South East Asia
market.
9•
Large Industrial land for development: Areas
of 4,000 acres for future expansion and able
to meet industrial needs .
10•
Logistics: Natural deep sea port, ideal for
activities, availability of port facilities – Liquid
terminal (20m draft), dry bulk terminal (14 m
draft), future container terminal(17 m draft)
11•
Government incentives: Pioneer status,
investment tax allowance and other
additional incentives.
3•
•
4
5•
•
6
Strategic Partners: Proximity to plentiful
supply resources and strategically located
at the confluence of shipping lines with
easy access to global markets.
Infrastructure supports: Competitive
infrastructure support & speed of
completion.
Technology driven: Commercialization of
Malaysia’s R&D technologies in palm oil
and palm biomass.
Source: POIC Standard Briefing Notes, November 2013
7•
Appropriate Policies: Refinery, fertilizer,
oleochemical, renewable energy biomass, oil
& gas industry, port and logistic industry and
commodities being the sought-after thematic
focus.
Relaxation of licensing criteria: E.g. approval
of refinery license – to locate as many as
possible in order to form a cluster strategy.
Source: POIC Standard Briefing Notes, November 2013
Source: POIC Standard Briefing Notes, November 2013
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All Rights Reserved