Straits, which was formerly known as Raya International and was involved in the distribution of water filter components, diversified into oil trading and bunkering services in end-2015. Currently oil trading makes up the bulk of its revenue.
The company said it has allocated MYR6m ($1.4m) for the acquisition of two bunkering vessels, Sturgeon and Straits 1 for its new business. The acquisition of Sturgeon was completed in June this year for MYR3.2m.
The new business marks Straits’ entry into what it believes is the rapidly growing marine logistics sector.“Moving forward, Straits is positioning itself as a major marine logistics company in the provision of premium oil bunkering services to marine and cargo bulk transporters, oil and gas vessels, floating production storage and offloading vessels, cruise ships and ferries," Straits executive director Ho Kam Choy was quoted as saying in local media.
“We are currently involved in offshore oil trading and expect to commence oil bunkering services by early fourth quarter 2017 with the acquisition of our first two vessels,” he added.
Straits’ venture into the bunkering services business will be done via its 51%-owned subsidiary, Selatan Bunker (M).