The company, which is under Practice Note 17 financial management, said in a stock market release that it has sealed a support services agreement with the Chinese firm to provide supply base and marine support services to its project in the APH.
The 24-month deal involves provision of a supply base with five acres of land adjacent to the Port of Tanjung Pelepas (PTP), along with warehouse and logistics support, agency services and customs clearance as well as marine support services. Dalian has agreed on a rate of cost plus 5% for the provision of the various services.
Works are due to start in the second half of this year. The construction cost details were not disclosed.
Dalian handles oil storage terminal engineering procurement and construction works for APH, which was conceived in 2005 in a plan to reduce the cost of landed petroleum products in Malaysia by cutting out the double handling charges that were usually levied on deliveries.
The hub being constructed on a 40ha man-made island near PTP, was scheduled for completion in 2009 but had stalled in 2011 on cost overruns and lack of funding during the 2008 financial crisis.
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