PUTRAJAYA: Eastern Pacific Industrial Corp Bhd (EPIC) says its 61%-owned Konsortium Pelabuhan Kemaman Sdn Bhd (KPKSB) will invest RM45mil to expand the liquid chemical berth (LCB) at the port of Kemaman in Terengganu.

“The fund will be used to expand the existing facility and to construct a new LCB terminal,” chairman Datuk Mohamed Awang Tera told reporters after the KPKSB privatisation contract signing ceremony yesterday.

He said the expansion was to cater to the anticipated increase in throughput level at the LCB terminal, with the new bitumen plant owned by Seloga Holdings Bhd coming on stream next year.

KPKSB won a 60-year concession to operate the East Wharf and the LCB terminal under a privatisation scheme announced last week.

KPKSB would take over operations of the terminals from the Kemaman Port Authority on Oct 1. The company, in which Road Builder (M) Holdings Bhd is a 39% partner, was expected to generate RM50mil in revenue per annum.

EPIC, through subsidiary Pengkalan Bekalan Kemaman Sdn Bhd, has been managing the Kemaman supply base since 1982. The terminal provides support services to the oil and gas industry off the coast of Terengganu.

Meanwhile, Road Builder owns the West Wharf facility, a private jetty, and a nearby port in Kuantan. “Its a good opportunity for Road Builder to expand its port operation in the east coast,” joint managing director Datuk Shamsudin Md Dubi said.

On EPIC’s current year performance, Mohamed said the company was likely to register lower profits for the year ending Dec 31 largely due to provisions made for its failed investments in Aurado Energy Inc.

The company reported a turnover of RM49.5mil and net profit of RM2.16mil, or 1.31 sen per share, for the first six months ended June 30. The results were affected by provisions of RM7mil made during the first two quarters.

Mohamed expected the company to make further provisions in the coming quarters.