FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 67 GROUP BUSINESS REVIEW OPERATIONAL PERFORMANCE Overview Leveraging over 45 years of experience, the Bulking & Storage segment excels in the storage operations business. It manages storage facilities for edible oils and dry cargo, operating across 12 terminals in Malaysia and Pakistan, with a global capacity of over 1 million MT. Our facilities are approved by Bursa Securities for managing Port Tank Installations in Pasir Gudang, Port Klang and Sahabat for CPO and CPKO, and extended CPO futures trading in Lahad Datu. In 2023, we undertook a strategic initiative to expand our bulking and storage capacity by 25,500 MT through facility expansions across Malaysia. This expansion effort significantly bolstered our total capacity for bulking and storage facilities, including those in Pakistan, to 1.10 million MT. However, on the operational front, the segment faced challenges, experiencing a 10% decrease in throughput handled, amounting to 7.51 million MT compared to 8.36 MT in 2022. This decline in volume was influenced by several factors, including reduced inflows of palm oil products from Indonesia, decreased stock movement for Malaysian palm oil due to heightened competition from substitute products, and decreased demand from importing countries such as India and China. As a result, the turnover rate decreased by 12% to 7.33 times, in line with the lower throughput handled. As part of our focus to diversify our services, Langsat Bulkers Sdn Bhd (LBSB), located in Tanjung Langsat, Johor, is tailored as a dedicated terminal managing renewable and biomass feedstock. We are currently constructing 24,900 MT tanks, with construction commencing in April 2023. Out of the total capacity, the first phase comprising 5,600 MT, has been completed in December 2023. With the completion of the new tanks in Tanjung Langsat expected in the third quarter of 2024, we will be able to cater to the storage demands for renewable energy and biomass from global and regional players. Received MSOSH OSH Gold Class 1 Award under Logistics and Transportation Category Bursa Securities has approved Sahabat Bulking Installation to manage the Port Tank Installation for CPO The segment has also broadened its customer base by securing new major vegetable oil clients at both the Lahad Datu Bulking Installation (LDBI) and LBSB terminals. In line with our diversification efforts, we are actively engaging in commercial activities related to biomass feedstock. Currently, we are in the process of obtaining the GGL certification, which will enable us to supply PKS primarily to the Japanese market. Storage Volume (Million MT) 7.51 8.36 8.21 2023 2022 2021 Storage Tank Turnover Rate (Times) 7.33 8.37 8.15 2023 2022 2021 Bulking/Storage Capacity* (Million MT) 1.10 1.07 1.08 2023 2022 2021 * Inclusive of Malaysia and Pakistan BULKING & STORAGE
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