Singapore Hin Leong sells shares in terminal
Jurong Port, a terminal operator with more than 50 years' experience in Singapore, announced in March that it acquired 41% of shares in Universal Terminal, an oil storage facility in Jurong Island in the western part of Singapore. Jurong Port bought stocks from the founder of Hin Leong Trading, an oil trader in Singapore that had gone bankrupt. The trade value was estimated to be about 350 mil US dollars. Along with the acquisition of Universal Terminal, Jurong Port became the largest oil storage company in Singapore.
Universal Terminal is one of the largest oil storage facilities in world, which holds seven tanks with a total of 2.33 mil cubic meters of storage capacity. It owns 15 piers in total including two piers that can berth Very Large Crude Oil Carriers (VLCC). It also has nine barges to supply bunker oil.
Jurong Port might enter oil trading in the future, said a source from an oil trader in Singapore. PetroChina International (Singapore), a subsidiary of PetroChina in Singapore, owns a 25% stake in Universal Terminal while MAIF Investments holds a 34% stake. MAIF Investments is a subsidiary of Macquarie Group, a major investment bank in Australia. Jurong Port is a subsidiary of JTC Corporation, a development company managed by the Singaporean government. Hin Leong Trading, which sold its stake this time, went bankrupt last year as its liabilities were found to have exceeded its assets along with a sharp drop in international crude prices.