Johor terminal sues port operator for failure to maintain draft

Kuala Lumpur: Langsat Terminal (One) (LT-1) has today begun arbitration proceedings against Tanjung Langsat Port (TLP) to recover damages for the port operator’s alleged failure to maintain a minimum draft in the port’s approach channel.

LT-1, the claimant, owns and operates a 476,000-m3 tank terminal facility for the handling, storage and processing of petroleum and petroleum products at the port, located in Johor, Malaysia.

The tank terminal operator is claiming losses and damages it says were incurred by TLP’s breach of its obligations to provide a minimum draft of 16.5 m at the approach channel, in order that partially laden VLCCs would be able to access and berth at the port.

LT-1’s losses and damages are to be assessed in the arbitration at the Kuala Lumpur Regional Centre for Arbitration.

MISC says the arbitration proceedings are in the best interest to preserve LT-1’s rights to commence arbitration under the provision of the Concession Agreement dated April 12, 2007, and the Deed of Novation dated June 21, 2007. [09/10/14]

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