Malaysia started building of of Kuala Linggi International Port (KLIP) oil facility in Malacca worth 2.8 billion USD. The construction project is implemented by port operator T.A.G. Marine, while the development company is Linggi Base. The project will be financed by Chinese investor. The Kuala Linggi International Port will offer services for the storage and transshipment of crude oil and petroleum products, as well as repair and bunkering vessels. The port complex will have storage facility for 1.5 million cub m. The construction of the port began this month and the commissioning of the facility is expected within ten years.
The port of Kuala Linggi International Port (KLIP) will be located on only 200 km from Singapore, which is Asia’s leading petroleum port transshipping oil worth 600 billion USD per year and world’s third largest port. Port of Singapore is overloaded, and courts often have to wait in the roads possible approach to the jetty. The storage and transshipment of crude oil on the roads in Singapore is prohibited, so these operations can provide a competitive advantage new Kuala Linggi International Port oil facility.
Some experts also believe that the Kuala Linggi International Port (KLIP) project in Malacca is a part of the initiative “Belt and Road”, which aims to “China’s economic expansion in Southeast Asia”.