Can-do spirit achieves RAPID result

Can-do spirit achieves RAPID result

Volvo Construction Equipment has delivered 30 articulated haulers in record time for oil and gas company, Petroliam Nasional Berhad’s RAPID project in south Malaysia.

The national state owned oil company of Malaysia, Petroliam Nasional Berhad – better known as – Petronas, has embarked on its latest project in the country. The Refinery and Petrochemical Integrated Development (RAPID) project is expected to spur economic growth and attract domestic and foreign investments into the country.

Located in the beautiful state of Johor, a name originated from the Arabic word for gem or jewel, the scheme is in line with Malaysia’s aim to establish new growth areas in a bid to improve its people’s quality of life.

In one of the biggest machine deliveries in recent history, Volvo Construction Equipment (Volvo CE) took just 30 days to deliver 30 articulated haulers – arriving just in time to break ground at one of Malaysia’s largest construction projects. The A40 articulated haulers, purchased by one of Malaysia’s largest contractors, Menta Construction Sdn Bhd (Menta), has been awarded a large part of the earthworks contract for the RAPID project.

Petronas project
The proposed US$20 billion RAPID project in Pengerang, southern Malaysia, was launched in May 2012 and aims to deliver a world-scale complex to meet the growing need for specialty chemicals. The project will also help to meet demands for petroleum and petrochemical products in the Asia Pacific region by 2016.

Southern Johor was chosen as the location for the project due to its proximity to deep water port facilities and regional demand centers. The location also enables easy transport of finished products to the domestic and international markets.

Heavy metal
Menta Construction already has a large fleet of Volvo CE machines, which now includes over 60 units. The company was established in 1982, with the main objective of participating in infrastructure works – especially site clearance, earthworks and rock blasting.

However, since then, Menta has expanded its remit, venturing into the construction of roads, water reticulation, drainage and sewerage works, as well as the construction of buildings and transportation. Menta’s own fleet of machinery and equipment exceeds RM$38 million, giving it the financial strength and fleet size often required by tendering companies, bidding for large contracts. 

“Volvo CE has managed the sales process very well and met my expectations of delivering the machines on schedule within a tight deadline,” says Tan Choon Hock, construction chief executive officer of Menta.

“This sale was only made possible in such a short time due to an entire team effort from Volvo CE Malaysia,” says Brandon Ross, business director for Volvo CE Malaysia. “Additionally, part of the sales success was our ability to guarantee that this large-scale fleet would be supported in the aftermarket.”

“Our project management capabilities, including parts supply, service support and customer management, ensures that the fleet will be maintained during the project to provide optimum uptime for the customer,” adds Ross. Volvo CE will also deliver a full product support team to manage the project, including a fleet manager and two full-time mechanics during the initial delivery.

Rapid developments
Nearly 40,000 workers are expected to be required during the construction phase of RAPID, and the project is set to generate 4,000 new jobs following completion.
The complex will cover an enormous area of 2,000 hectares and includes a crude oil refinery with a capacity of 300,000 barrels every day. It will produce nine million tons of petroleum products and 4.5 million tons of petrochemicals a year.

“Everything Volvo has promised, it has delivered,” says Choon Hock. “Volvo CE is a reputable company and its machines are known to be among the most productive in the world, so it was an obvious choice to add these machines to our growing fleet.”

Other infrastructure works to support the project include pipelines, storage tanks and warehousing facilities. Petronas is exploring the feasibility of constructing a liquefied natural gas terminal and a co-generation power plant to support the project. RAPID will help Petronas produce premium petroleum products and specialty chemicals for the next 20 years, generating long term employment opportunities in the region by suppliers and related industries.

Ends.

March 2013

Picture – Volvo CE’s A40 articulated haulers line up ready for duty

For further information, please contact:

Anne Bast      
Vice President Corporate Communication 
Volvo Construction Equipment, Region APAC 
33 Joo Koon Circle     
Singapore 629111  
Tel: + 65 6412 2804
Email: anne.bast@volvo.com

Brian O’Sullivan
SE10
London
Tel: +44 207 107 2003
Email: osullivan@se10.com