Since 1977, Johor Corporation has been entrusted by the Johor State Government to act as the Pasir Gudang Local Authority or the Administrator for Pasir Gudang, currently covering a total area of 31,132ha. The World Health Organization (WHO) in year 1997 also recognizes Pasir Gudang as a model for a ‘Health Industrial City.’ Over the years, Pasir Gudang has successfully developed into one of the most important economic growth centres in the country through its industrial development, tourism and sports activities.
Pasir Gudang has the largest concentration of palm oil refining industries and downstream activities in the world. There are also various types of industries such as gas based industries, petrochemical and petroleum, ship building and engineering, small and medium scale as well as high-tech industries. There are more than 300 factories in Pasir Gudang that have provided more than 30,000 employment opportunities to the community of 100,000 people in Pasir Gudang.
Currently, Pasir Gudang Industrial Area has 17 factories with oil based products namely oleochemical, palm oil refinery, edible oil refining, stearin, RBD palm oil, RBD palm olein, RBD palm stearin & palm fatty acid and palm oil downstream products. The existing tank farm facilities in Pasir Gudang are the world’s largest edible oil tankage facility catering for the throughput from the companies operating within hinterland of Pasir Gudang.
There is also Biofuel Park located in Tanjung Langsat Industrial Complex, where an area of 1,200 acres has been allocated for biofuel project and related industries. Kulim (Malaysia) Berhad has purchased 50 acres of land in Biofuel Park and is expected to start its operation in 2007 producing 100,000 TPA of biodiesel.
Amongst the infrastructure provided in Biofuel Park are the tank farm and pipeline facilities that will be managed by Langsat Bulkers Sdn. Bhd. located at Tanjung Langsat Port area. The pipeline services will connect the factories, the tank farm and the jetty.