Floating Storage Unit “FSU”

Nature of service provision

The Group Company has provided the transport and floating storage unit (FSU) services by using FSU vessels for storage of goods; whereas, the Group Company shall be obliged to keep goods of its customers in the condition as per the quality, specifications and quantity as prescribed by customers within the agreed period of time.

With the increasing fuel consumption in Asia and restrictions on land use for construction of additional onshore tank terminals in Singapore which is the Asian fuel FSU hub, FSU vessels have been used as substitutes for fuel storage and ship-to-ship transfer of fuel FSU operators which reduced port expenses and the waiting time, and had no restrictions on tidal height level at ports.

Goods that the Group Company provided services of transport and storage

Goods that the Group Company had its expertise in transport and storage included crude oil and furnace oil.

Nature of Service Provision of Leasing out Tanks for Storage and Transport of Goods

The Group Company provides its business of leasing out tanks for storage of goods in FSU vessels which are large vessels with large square storage tanks, numbering 7-17 tanks per vessel; whereas, the Group Company provides its services divided into 3 types including 1) leasing out of some tanks for storage; 2) leasing out of whole tanks for storage of goods or leasing out of whole vessels; and 3) provision of fuel mixing and other services.

The Group Company has been able to provide services of domestic and overseas transport and floating storage of goods. At present, FSU vessels of the Group Company have been docked at Tanjung Pelapas Port in Malaysia and in waters between Singapore and Malaysia, which being the Asian hub of fuel FSU business; whereas, Tanjung Pelapas Port has proper location for docking of FSU vessels because it is located in the International shipping routes of large commercial vessels. Moreover, the Group Company start the service of oil storage with FSU vessel in areas of Koh Sichang, Sri Racha District, Chonburi Province.