BINTULU, April 12 (Bernama) -- While Bintulu owes its transformation from a sleepy fishing village to a thriving industrial hub primarily to the oil and gas industry, it is currently poised to leverage on the success of the fast-developing Samalaju Industrial Park (SIP).

The 8,000-hectare SIP, which is one of the five growth nodes under the Sarawak Corridor of Renewable Energy (SCORE) initiative and mainly focuses on heavy and energy-intensive industries, has so far succeeded in attracting a whopping RM28 billion worth of investments.

Bintulu Development Authority (BDA) SCORE Manager (Investments) Adie Asad said Bintulu was now not only well on its way to becoming one of Southeast Asia's high-tech industrial centres, but it also hoped to attain city status by 2020 when its population reached 500,000.

During the 1970s, Bintulu only had a population of 14,000 but it has now swelled to about 250,000.

"As it is now, Bintulu is developed but we want to see it becoming a city... even if not in 2020, we hope to see it attaining this status by 2025. We're moving towards that direction," he told Bernama, here during a recent media trip to Bintulu organised by the Information Department.

RAPID DEVELOPMENT

Adie added that the SIP's burgeoning industries were also a catalyst for Bintulu's growth due to its proximity to the industrial park.

"SIP has provided job and business opportunities to the locals in Bintulu," he said, adding that about 6,000 people were currently employed in the various industries in SIP, while it has been projected that another 14,000 jobs would be created by 2020.

The SIP, located 62 kilometres from here and accessible via the Bintulu-Miri coastal road and the Pan Borneo Highway, was established mainly as a base for heavy and energy-intensive industries.

Developments in the SIP, as well as that of the Samalaju Industrial Port, are being overseen by the BDA, which was established in 1978 to speed up the development and modernisation of the Bintulu division.

As part of SCORE, the core of the SIP is its green or renewable energy, which is supplied by the hydroelectric power stations in Bakun and Murum.

Currently, eight companies are operating there, among them being Japan's Tokuyama Corp, Singapore's OM Materials Ltd, Hong Kong's Pertama Ferroalloys Sdn Bhd, Malaysia's Press Metal Sdn Bhd and South African-Japanese consortium Sakura Ferroalloys Sdn Bhd.

Tokuyama is involved in the production of polycrystalline silicon; Press Metal, aluminium ingots and billets; Pertama Ferroalloys, silicon manganese; OM Materials, ferro manganese; and Sakura Feroalloys, ferro silicon manganese.

PHASE 1 OF PORT TO BE READY IN Q1 2017

Samalaju Industrial Port Sdn Bhd Senior Executive (Stakeholders Relations) Fiona Lurek Ujang, meanwhile, said work on the first phase of the port's development was progressing well.

She said the port has the potential to boost Bintulu's economy as it would have the capacity to handle 18 million tonnes of cargo every year once it is operational by the first quarter of next year.

A total of RM1.9 billion is being spent to develop the port's interim and first phases, which cover an area of 156 hectares out of the 393 hectares allocated for the entire port project.

The port has been partially operational since April 2014 following the completion of its interim phase.

Fiona said the Samalaju Industrial Port was a purpose-built port to provide dry bulk cargo services for the heavy industries located in SIP.

Strategically located between Miri and Bintulu and equipped with high-tech facilities and conveyer belt system, the port has been identified by the state authorities as one of the key factors driving the SCORE development. They have also envisaged it as playing a vital role in facilitating regional economic growth.

"The Samalaju Port has already been identified as one of the main factors drawing investments into this area... (this is because) heavy industries have to be located close to a port to ensure efficient handling of their materials," said Fiona.

The port's development is scheduled to be carried out over four phases but, she explained, Phase 2 onwards would be developed in the future after the demand and need for port facilities are ascertained.

"Right now in its interim phase of operations, the port has the capacity to handle cargo ships carrying loads weighing 8,000 DWT (deadweight tonnage). And, if all the phases of development are completed, the port will be able to handle 50,000 DWT-vessels," she said.

Fiona said eight companies have already confirmed that they would be using the port's services next year after the completion of Phase One. They are Samalaju Industrial Port itself, Press Metal, Tokuyama, Pertama Ferroalloys, OM Holdings, Malaysian Phosphate Additives, Sakura Ferroalloys and Elkem Carbon Malaysia.

"Although only our interim phase has been completed so far, we already have a few companies like Press Metal using our services," she added.

HIGH DEMAND

Press Metal General Manager Choo Yong Tee said the availability of a deep-water seaport close to the SIP has made the industrial park a strategic location for his aluminium smelting company and enabled it to attract higher demand globally for its aluminium products.

He said this was because potential foreign clients preferred to do business with companies whose plants were located close to a port.

Since Press Metal is located a mere three kilometres from Samalaju Port, the demand for its products have increased worldwide, he said.

"Our main markets are South Korea and Japan, which require lower logistic costs as they are located closer... but, at the same time, we have markets worldwide, including India and Europe.

"There's high demand for aluminium because it's needed in various sectors, including the construction and automotive industries. In fact, it is also needed to make cans for canned drinks," he said.

Choo also said that the availability of more efficient renewable energy at the SIP has enabled his company to increase its output at reduced energy costs.

Press Metal also has a plant in Mukah, which happens to be Malaysia's first smelting plant. It also has a plant in Kapar, Klang, as well as operations in Foshan, China, via Press Metal International Ltd.

According to Choo, its plant in SIP, which is 1.1 kilometre in length and located on a 202-hectare plot, was the biggest in Southeast Asia but "currently only 60 per cent of the land is being utilised".

The plant, which started operations in October 2012, has the capacity to produce 640,000 metric tonnes of various aluminium products, including ingots, annually. Press Metal imports its raw aluminium from Australia.

It has a workforce of 2,000, of which 40 per cent comprise locals.

"Our engineers and technicians are all locals but we are still dependent on foreign workers to do the hard work inside the smelting plant, where it's very hot... the local people are not to keen to work in such an environment," he added.

-- BERNAMA