Singapore-based Asia Pacific Exchange (APEX) has chosen Lahad Datu in Sabah as a delivery port for its Crude Palm Oil and RBD Palm Olein Futures Contracts, with the appointment of POIC Bulk Terminal Sdn Bhd as the independent Port Tank Installation (PTI) for cargoes to be physically delivered.
The event was marked by an official ceremony held at Kota Kinabalu on the 21st May 2019, where Chief Minister of Sabah, YAB Datuk Seri Panglima Haji Mohd Shafie Bin Haji Apdal, witnessed the signing of a service agreement between POIC Bulk Terminal Sdn Bhd and APEX.
This will make Lahad Datu the fifth delivery location for the contracts in addition to Port Klang and Pasir Gudang in West Malaysia, and Dumai and Belawan in Indonesia. With this new location, all commercial participants in East Malaysia, West Malaysia and Indonesia can take part in the sale and purchase of crude palm oil and palm olein, and this greatly expands the market coverage and depth so that more palm oil customers can enjoy the service of APEX.
In addition to the delivery locations, APEX Crude Palm Oil and RBD Palm Olein Futures Contracts also have similar features such as 10 metric ton contract size and US-dollar denomination. This will not only address the needs of the physical market from around the region as well as internationally, but also provide more convenience and arbitrage opportunities to participants of the palm oil industry.