PUTRAJAYA: Three weeks. This is how fast the government has processed AsPac Lubricants (Malaysia) Sdn Bhd’s application to lease land in Port Klang. Transport Minister Anthony Loke said the company had faced uncertainty in getting the agreement at the current site extended and had been trying for few years. The Railway Assets Corporation (RAC) has received the land lease application from AsPac Lubricants on July 1, 2014. AsPac Lubricants has leased the land from KTMB/RAC since 1990. Loke said the company had reached to a point of even reviewing its business presence in Malaysia, which could affect the local workers. “It is quite a straight forward deal that should be sped up. In three weeks, I have managed to bring the matter up in Cabinet for approval. “The new government is always prepared to facilitate and welcome foreign investments which will have spillover effects on the country’s economy and create job opportunities,” he said after the signing of a 30-year land lease agreement to enable the modernisation of BP’s lubricants blending plant in Port Klang between RAC and AsPac Lubricants. The long-term lease covers a land area of 49,704.03sqm.
The minister also urged international business communities to raise any concerns with the respective Malaysian embassies so that their issues could be relayed to the relevant ministries. “Once we receive them (raised concerns), we will take action and facilitate,” he said. British High Commissioner to Malaysia Vicki Treadall lauded the government’s effort to speed things up and to be business-friendly, citing the newly signed land lease agreement as a good example. Earlier, Loke and Treadall have witnessed the signing of the land lease agreement.
The 30-year lease will enable AsPac Lubricants to develop plans for the modernisation of the plant, known as Port Klang Installation- via an initial estimated investment of RM60 million. Established in 1969, AsPac Lubricants- the BP lubricants blending plant and warehouse- blends and packages various grades of Castrol and BP motor and gear oils, automatic transmission and hydraulic fluids and industrial lubricants. The operations currently employ more than 300 staff and contractors on its site. The land lease letter of offer was presented to AsPac Lubricants on July 31 with the acceptance received on Aug 2, 2018. Port Klang Installation currently has a manufacturing capacity of 120 million litres of lubricants products per annum, and through the modernisation plans it is projected that the production capacity will increase by 30 million litres per annum upon completion. The land lease is part of RAC’s core business to generate sustainable income flows for the government through RAC-owned real estate, aligned with the provisions under Section 29 of the Railway Act 1991. © New Straits Times Press (M) Bhd