THE STAR, October 28th, 2002 - FUEL and Marine Marketing LLC(FAMM), a subsidiary business arm of Chevron Texaco, is set on making Port Klang one of its bunker storage hubs in the region.

"We have joined with ChevronTexaco, one of the leading bunker fuel companies in the world, to produce one of the best bunker storage facilities in the country," FAMM chairman Datuk Eugenio Campos said at the launch of the company's first liquid discharge at Westport last week. Singapore was previously the only bunker storage facility in the region that blends fuel to customers' requirements, and by setting up a bunker storage facility in Port Klang, FAMM is offering ship owners a cheaper alternative to discharge their products.

"We are able to bring the price of bunking down by RM2 per tonne from the RM10 to RM12 per tonnes that Singapore charges, which is a significant amount.

"With lower prices, more ships will berth in Westport, which would be good for both FAMM and the port.

"We hope that this everybody wins partnership facility will play a vital role in the overall bunkering strategy for Malaysia and Singapore, and as a Malaysian company, we want to provide the best facilities for our country," Campos said.

FAMM currently owns half of Penjuru Terminal in Singapore, which has a capacity of 450,000 tonnes.

"I think the FAMM terminal in Port Klang will complement the Penjuru Terminal very well.

"A healthy competition between both the terminals will make them work hard to give customers their best products, and it will be interesting to see which terminal will be able to attract and keep the most customers," Campos said.

The company which signed a multi-year lease agreement with Westport Bunkering Services, (WEBS) in September, is currently upgrading the 200,000-tonne capacity storage tanks.

The upgrading includes installing additional blending and pumping capabilities to the terminal.

"We have 10 storage tanks in total, although only four are in operations right now. We would have all 10 tanks in operation by April next year," Campos said.

"Due to the state of the upgrading, the company will be bunkering oil products on a 1imited basis, as operational condition permits.

In conjunction with the launch, the double-hulled MT Samar Spirit made its maiden call at Westport, discharging 60,000 tonnes of high sulphur fuel oil for bunkering to ships calling Port Klang and for FAMM's landed clients.

The FAMM terminal is leased and operator by FAMM-Indah Sdn Bhd, with FAMM holding a 70% share.

FAMM-Indah Sdn Bhd, which supplies more than 700 ports worldwide with lubricants and more than 250 ports with fuel, is expected to assume the operational control of the WEBS facility in the fourth quarter of this year.

"FAMM is an ideal ally as it places Westport in a prime position to offer value added bunkering services and savings to the vessel operations calling in at Port Klang.

"This partnership will further enhance the Westport's transhipment hub status in the region," Westport executive chairman Tan Sri G. Gnanalingam said.