62800225 final executive summary[1]

EXECUTIVE SUMMARY

Independent Deepwater Terminal at Pengerang, Johor Contents Detailed Environmental Impact Assessment

DHI Water & Environment 62800225.01 DEIA/1010 ES-i

TABLE OF CONTENTS

1 INTRODUCTION ............................................................................................................. 1

2 STATEMENT OF NEED ................................................................................................. 1

3 PROJECT DESCRIPTION .............................................................................................. 2 3.1 Project Location .............................................................................................................. 2 3.1.1 Reclamation Borrow Site Location ................................................................................................. 2 3.1.2 Dredge Spoil Disposal Location ..................................................................................................... 2 3.2 Project Components........................................................................................................ 4 3.2.1 Terminal Operations ....................................................................................................................... 4 3.2.1.1 Overall Process Flow ...................................................................................................................................................... 4 3.2.1.2 Emissions and Wastes ..................................................................................................................................................... 5 3.2.2 Development Phases ..................................................................................................................... 6

4 PROJECT OPTIONS ...................................................................................................... 6 4.1 Project Siting and Layout ................................................................................................ 6 4.2 No Project Option ............................................................................................................ 9

5 EXISTING ENVIRONMENT ............................................................................................ 9

6 KEY ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES .......................... 11 6.1 Construction Stage........................................................................................................ 11 6.1.1 Suspended Sediment Plumes during Dredging and Reclamation ............................................... 11 6.1.2 Water Quality ................................................................................................................................ 11 6.1.3 Air and Noise ................................................................................................................................ 12 6.1.4 Terrestrial Ecology ....................................................................................................................... 12 6.1.5 Marine Ecology ............................................................................................................................. 12 6.1.6 Socioeconomic Impacts ............................................................................................................... 13 6.2 Operation Stage ............................................................................................................ 13 6.2.1 Morphological impacts on adjacent shorelines ............................................................................ 13 6.2.2 Water levels and flooding ............................................................................................................. 14 6.2.3 Water Quality ................................................................................................................................ 14 6.2.4 Air and Noise Impacts .................................................................................................................. 15 6.2.5 Marine Ecology ............................................................................................................................. 16 6.2.6 Quantitative Risk Assessment ..................................................................................................... 16 6.2.7 Land use ....................................................................................................................................... 16 6.2.8 Socioeconomic Impacts ............................................................................................................... 17 6.2.8.1 Relocation of Residents within Terminal Buffer Zone ................................................................................................. 17 6.2.8.2 Impacts to fisheries ....................................................................................................................................................... 17 6.2.8.3 Impacts to Tourism ....................................................................................................................................................... 17 6.2.8.4 Impacts to Industries within Terminal Buffer Zone ...................................................................................................... 17 6.2.9 Land Traffic .................................................................................................................................. 18 6.2.10 Marine Traffic ............................................................................................................................... 18

7 RESIDUAL IMPACTS ................................................................................................... 18

Executive Summary Independent Deepwater Terminal at Pengerang, Johor Detailed Environmental Impact Assessment

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8 ENVIRONMENTAL MANAGEMENT PLAN .................................................................. 19 8.1 Management of Construction ........................................................................................ 19 8.1.1 Dredging and Reclamation Monitoring and Management Strategy ............................................. 19 8.1.2 Impact Areas ................................................................................................................................ 19 8.1.3 Environmental Management Plans .............................................................................................. 19 8.2 Management of Operations........................................................................................... 20

9 CONCLUSION .............................................................................................................. 21 LIST OF FIGURES Figure 1 Terminal site location. .......................................................................................................... 3 Figure 2 Overall Terminal flow chart. ................................................................................................. 5 Figure 3 Terminal development phases – Option 1 (Western option). .............................................. 7 Figure 4 Terminal development phases – Option 2 (Centre option). ................................................. 8 LIST OF TABLES Table 1 EMP topics during construction phase. ............................................................................. 19 Table 2 EMP topics for operational phase. ..................................................................................... 20

Independent Deepwater Terminal at Pengerang, Johor Executive Summary Detailed Environmental Impact Assessment

DHI Water & Environment 62800225.01 DEIA/1010 ES-1

1 INTRODUCTION

The present report documents the Detailed Environmental Impact Assessment (DEIA) for the Proposed Independent Deepwater Petroleum Terminal (hereafter referred as the “Terminal”) at Pengerang at Johor, Malaysia. The Terminal will be a facility for receiving, storing, handling, blending and distribution of crude oil and petroleum products, with an anticipated total storage capacity of approximately 10 million m3, handling both Dirty Petroleum Products (DPP) and Clean Petroleum Products (CPP). These products will be transported to and from the Terminal via ships and barges. The marine facilities of the Terminal will be capable of handling all the products and berthing various sizes of ships, including Very Large Crude Carriers (VLCCs).

The development of the Terminal involves dredging and reclamation As such, this development encompasses four prescribed activities under Section 34A of the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987, which require an Environmental Impact Assessment (EIA) to be carried out:

Item 4: Land Reclamation: Coastal reclamation involving an area of 50 hectares or more*.

Item 10(a): Ports: Construction of ports.

Item 11(c): Mining: Sand dredging involving an area of 50 ha or more.

Item 12(c): Construction of oil and gas separation, processing, handling and storage facilities.

* requires Detailed EIA.

This DEIA study covers the impacts arising from the construction and operations of the proposed project, including the reclamation of land, capital dredging, construction of the marine facilities and tank farm and finally the operations of the Terminal including shipping, loading and offloading, blending and storage of crude oil and petroleum products.

The TOR for this project does not require this DEIA to address the offshore borrow dredging activity or the disposal of dredge spoil. Both of these components will be assessed under separate approval processes.

The Project Proponent is a consortium comprising Dialog Group Berhad, Vopak Asia Pte. Ltd. and the State Government of Johor. This DEIA was prepared by DHI Water & Environment (M) Sdn. Bhd. with a team of EIA Consultants and Subject Consultants.

2 STATEMENT OF NEED

The demand for oil products in Malaysia and the Asia Pacific region has outstripped supply and the resulting deficit has been one of the key drivers behind the growth of the Southeast Asian Oil Hub in Singapore. These deficits are expected to increase further in the future due to increasing demand in Malaysia and in the region.


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The conduits to receive these imports required to meet demand will be land based storage facilities; hence there is a need for additional land-based petroleum storage facilities responding to deficits of the Singapore Oil Hub. By strategically placing the project at Pengerang, the proposed project will be able to meet the region’s additional demand for storage. Additionally, being a deep water facility, the Terminal is advantaged to receive fully-laden Very Large Crude Carrier (VLCC) class vessels, which sets it apart from other similar terminals in Malaysia.

In addition to addressing the direct needs of the petroleum storage and logistic industry, the Proposed Project has the following incidental benefits: • Environmental benefits accrue to the project owing to the provision of land-based oil

storage as opposed to the various existing storage and logistic activities currently carried out within the Johor Port Anchorage off Pengerang via Ship-to-Ship transfer (STS) operations, which pose a higher environmental risk in terms of oil spillage and waste disposal.

• Benefits to the Johor State and Malaysian economy as the project catalyses the industrialisation of Pengerang and south eastern Johor.

3 PROJECT DESCRIPTION

3.1 Project Location The Project Site is located in an embayment between Tg Kapal and Tg Ayam in the Mukim of Pengerang, Kota Tinggi District, Johor. It is approximately 115 km by road from Johor Bahru, the capital city of Johor. The area is within the Johor Port Limit and lies approximately 7 km from Singapore International Boundary (Figure 1), and is in close proximity to the international shipping lane connecting the Malacca Straits, Singapore and the South China Sea.

The adjacent hinterland area is primarily agricultural and residential, with the nearest settlements being Kg. Sg. Kapal on the western side of the Project area and Kg. Sg. Buntu on the east, with scattered houses up to around 80 m from the shoreline.

3.1.1 Reclamation Borrow Site Location The borrow material for the reclamation will be obtained from existing licensed sand concessionaires. The nearest available sand concessions are located in southeast Johor around the Ramunia Shoals area, just over 18 km east of the Project Site.

3.1.2 Dredge Spoil Disposal Location Dredge spoil will be disposed of at one of the disposal areas approved by the Marine Department. The nearest site is located around 21 km from the Project Site, while the other is located over 44 km from the Project Site.



Figure 1 Terminal site location.



3.2 Project Components The proposed project is to be developed into an independent deepwater terminal for storing, blending and distributing crude oil and petroleum products of a world class standard. The deepwater terminal comprises two main components described below:

1. Tank Terminal. The tank terminal will be constructed on approximately 700 acres of reclaimed land. The Tank Terminal comprises storage tanks and product handling facilities necessary for ships loading/unloading, storing, pumping, handling, blending, heating and distributing the products. The overall development will have a full storage capacity of approximately 10 million m3. The terminal will also be provided with utilities and infrastructure such as electrical power / fresh water supply, compressed air / nitrogen, waste water treatment, waste stores, office / control building, warehouse, maintenance workshop and laboratory, which are necessary to support the Terminal operations.

The Quantitative Risk Assessment for the Terminal has determined that a buffer zone of 250 m from the Terminal boundary will adequately accommodate the required safety separation between the Terminal and other land uses on the existing land adjacent to the Terminal. The area within this buffer zone will be zoned for industrial land uses by the State Government, and any incompatible land uses within the area will be relocated.

2. Marine Facilities. The marine facilities for the transfer of products to / from ships will comprise three jetties each constructed with eight berths capable of berthing various sizes of ships of between 1,000 DWT to 370,000 DWT. Capital dredging in the range of 12 million m3 in total is required around the marine facilities to provide the turning basins necessary for safe manoeuvring and berthing of ships. The marine facilities are located within the Johor Port limits.

3.2.1 Terminal Operations

3.2.1.1 Overall Process Flow

During product unloading operations, the products will be pumped from the ships berthed at the jetty to the storage tanks within the terminal via pipelines placed on multi-tier piperacks along the access trestle. From the ships, products are sent to jetty line through Marine Loading Arms (MLA) by ship pumps. Jetty pipelines are connected to the manifold located at the loading pump stations (LPS). Tank lines are connected to the jetty pipelines via the same manifold.

During product loading operations, the products will be pumped from the storage tanks to the ships berthed at the jetty via the jetty pipelines. Jetty pipelines are connected to loading pump discharge lines via the manifold. Tank lines are connected to pump suction lines in the same way.

Product transfer flow rates and other critical operations parameters will be controlled by a Programmable Logic Controller based process control system. The pumps and valves which support the transfer can be operated locally at site as well as from the terminal control room. The control system will ensure operations within the designed flow rates, and providing over-pressure protection as well as pipeline leak detection.



The main activities of the Terminal are schematically illustrated in an overall facility flow chart in Figure 2.

Figure 2 Overall Terminal flow chart.

3.2.1.2 Emissions and Wastes

Operational emissions and wastes will include the following: • Noise from the Loading Pump Stations and other operations equipment. • Gaseous emissions released via boiler stacks typically including particulate matter

(PM), nitrogen dioxide (NO2), sulphur dioxide (SO2) and carbon monoxide (CO). • Organic vapours or Volatile Organic Compounds (VOC) from the product storage tanks

emitted via their venting systems. Internal floating roofs (IFR) will be installed in dirty product and clean products tanks in order to minimise emissions of organic vapours.

The footprint of the tank will be provided with a reinforced concrete base or a suitable liner to avoid contamination of the soil and ground water in the event of a tank bottom leakage.

Storm water runoff from the Terminal will include the contaminated and non-contaminated streams. These two streams are separated and the contaminated stream will be treated before being discharged to the public drain or the sea. All the tank pits (the bunded areas) containing the storage tanks will be constructed with primary containment to contain and collect any possible spillage and oil-contaminated water (oily water). The jetty will be provided with curbs and sump for the same purpose. Oily water collected from the tank pits and the jetties will be directed to an oil separator. The segregated oil at the oil separator will be collected in a slop oil tank and later returned to the product tanks as much as possible or otherwise taken out of the terminal for proper disposal as scheduled waste.



All oily water will be collected and treated to Standard B effluent quality prior to release to the retention pond and subsequently to the surroundings. Sewage will also be treated in accordance to the requirements of the Environmental Quality (Sewage) Regulations, 2009.

3.2.2 Development Phases The Terminal, as well as the marine facilities, will be developed in phases to accomplish the ultimate full storage capacity of approximately 10 million m3.

Two options for the location of the Phase 1 development are under consideration at this stage of the project planning as set out below:

Option 1: Phase 1 reclamation and terminal to be constructed at the western end of the proposed full development with the western jetty being constructed as shown in Figure 3.

Option 2: Phase 1 reclamation and terminal to be constructed in the centre of the proposed full development with the eastern jetty being constructed as shown in Figure 4.

The final selection of the location for Phase 1 development is based on the detailed assessment of geo-technical conditions, degree of dredgeability and the development plan to be adopted for the future development. These assessments are on-going at the time of writing, and are expected to be concluded in December 2010.

4 PROJECT OPTIONS

4.1 Project Siting and Layout Several Project options and alternatives have been explored on a number of levels as summarised below:

1. Project Location. Three (3) alternatives for the siting of the Project within the Southeast Johor area have been considered and assessed with respect to (i) coastal stability and potential impacts of the development; (ii) initial assessment of wave and current conditions; and (iii) potential port layouts for each site. This initial appraisal concluded that the embayment between Tg Kapal and Tg Ayam was the most suitable area for siting the Terminal.

2. Reclamation Layout. An engineering feasibility study for the Project was subsequently commissioned for this area to determine a suitable layout for the terminal based on the proposed storage capacity and throughput. Reclamation layout options considered included the presently proposed nearshore reclamation and island reclamation. The feasibility study determined that the nearshore reclamation option was the most suitable.

3. Terminal Layout. Finally, several alternatives for the layout of the terminal on the reclaimed land have been explored, based on quantitative risk modelling. The final Terminal Layout options evaluated in this DEIA have been determined primarily with the view to ensure that the hazard zones and risk contours remain within an acceptable distance from the Project boundary.


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Figure 3 Terminal development phases – Option 1 (Western option).

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Figure 4 Terminal development phases – Option 2 (Centre option).



4.2 No Project Option The ‘No Project’ Option is a status quo option where no land reclamation works will take place. If the ‘No Project’ Option is exercised, the existing conditions of the Project site will remain whereby no development will take place in the immediate future.

5 EXISTING ENVIRONMENT

Physical Environment

The proposed site is located in an area facing south towards the Strait of Singapore. The nearshore area between Tg Kapal and Tg Ayam consists of flat beach profiles reaching up to -2m CD whereby the seabed becomes steeper further south into the Straits of Singapore.

Wave conditions The proposed site is in an area with limited fetch of winds that allow the generation of significant waves by local winds. Most wave energy reaching the site propagates from the South East China Sea and, similar to the wind conditions, waves are affected by the monsoon conditions. The highest wave and predominant wave direction is from the Northeast. There is a sheltering effect of the east facing shoreline (Tg. Penyusop and the Ramunia sand banks).

Tidal currents The site is in a transition zone of mixed tidal patterns as the Singapore Strait connects the South East China Sea with the Malacca Strait. Due to the spatial variability of the tidal levels between these two water bodies, the current flow around the study area tends to be significant with current speed offshore measurement exceeding 1 m/s.

Shoreline morphology The two rocky headlands bounding Kapal Bay (Tg. Ayam and Tg. Kapal) tend to shelter the shoreline against the predominant wave conditions. The shoreline comprises narrow sandy beaches, rocky areas and mudflats with scattered mangrove.

Hydrology There are four streams or rivers discharging into Kapal Bay, including Sg. Kapal, Sg. Buntu and two unnamed streams. The 100-year peak design discharges for these river catchments range from 44 m3/s to 225 m3/s.

Water Quality The water quality of these rivers were within or just outside Class IIA/IIB of the Interim National Water Quality Standard (INWQS). Total Suspended Solids (TSS) and nutrient levels in particular tended to be high especially in the upstream areas. Hygienic water quality was also relatively poor, with high counts of coliform bacteria.

The marine waters within and around the Project Site were similarly characterised by high TSS concentrations and slightly elevated nutrient concentrations. No pollution by heavy metals, petroleum or agrochemical compounds was detected.

Air and Noise Ambient air quality around the Project Site and sensitive receptors was good, with the exception of unusually elevated levels of nitrogen dioxide (NO2) at Kg. Sg. Buntu which far exceeded guideline levels. Noise levels were also generally higher than Department of Environment limits for both day and night time.


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Biological Environment

The hinterland adjacent to the Project Site is dominated by secondary vegetation, plantation and agriculture. The areas immediately along the shoreline are dominated by grassland.

No sensitive marine habitats were found within the Project Site. Beyond the Project Site, there are some scattered corals around the Pulau Lima group of islands, around 18 km east of the Project site, while around 13 km to the west, there are mangroves lining Sg. Santi and up to Sg. Johor. Sg. Johor is reported to support seagrass and is an important feeding ground for the dugong (Dugon dugong).

The nearshore waters within Kapal Bay and along the coastline up to P. Lima are important fishing grounds for the local fishermen. In particular, the lobster, Palinurus polyphagus, is an important local catch which yields high price in the market.

Human Environment

Kota Tinggi District is the largest district in the State of Johor covering an area about 3,500 square km, divided into 10 Mukims. The population in Mukim of Pengerang is 19,962 compromising around 10.4% of the total population of Kota Tinggi. The employment trends had changed from agriculture and fishery sectors to manufacturing and service sectors at Desaru Resorts and the oil rig fabrication centre at Teluk Ramunia.

Fisheries However, fishing remains an important activity along the coast around the Project site. The population of fishermen in the villages within 5km of the Project site is estimated at 469.

The area around Tg Kapal and Sg. Rengit is an important fishing ground for the local fishermen. The traditional fishing practice in the area is the use of drift net and belat for fish, while bubu is used to catch lobsters. There are four jetties along the shoreline of Kapal Bay which are used by the local fishermen. These fishermen expressed concern that the Project would affect their livelihood through loss of the fishing ground and restrictions on fishing around the Terminal area once constructed.

The income of the fishermen ranges widely, showing two distinct levels, one between RM1000 and RM3000 per month and the other RM9,000 and above. Detailed investigation shows that the amount of income generated is dependent on the amount of capital equipment used which in this case indicates the type of boat used.

In contrast, household income of non-fishermen ranged from less than RM500 a month to more than RM6,000 a month, with the majority (49%) earning between RM1,000 and RM3,000. Those in the higher income levels were generally entrepreneurs in the business of fishing, birds’ nest and hatchery.

Residential areas There are eight villages within 5 km of the Project site, with Malays forming the ethnic majority followed by Chinese. The total population of these villages is 4,559, with the largest vilage being Kg. Sg Kapal with a population of 1,257.

Within the 250 m buffer zone from the Terminal boundary there are between 43 and 47 land parcels (depending on the layout option) belonging to private individuals. There are between 9 - 12 houses involving up to an estimated 60 people within this buffer zone.



Tourism and Recreation. Tg Kapal Beach Resort is a well maintained resort bordering to the edge of the east coast end project boundary. Apart from the resort, local villagers reportedly use the beach areas for recreation on occasion.

Perception of the Project. Overall, a significantly high percentage of respondents interviewed (86%) could see beneficial effects to them, and hence they were either Very agreeable or Agreeable to the proposed Project. On the other hand, the formation of negative public opinion and attitudes to the Project has already developed, primarily due to the negative impacts to fishing in the Pengerang area.

6 KEY ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

6.1 Construction Stage

6.1.1 Suspended Sediment Plumes during Dredging and Reclamation Numerical modelling of the suspended sediment plume and sedimentation resulting from the reclamation and capital dredging works was carried out to predict the extent, magnitude (concentrations of suspended sediments) and duration of exposure of the affected areas to the plumes. With implementation of mitigation measures, results show that visual impacts (suspended sediment concentrations of 5 mg/l above background levels) will affect Singaporean waters near the maritime border and a 3 km stretch of shoreline along P. Tekong up 20% of the time in the worst case (i.e. around 1 month in total over the 5-month dredging period). For most scenarios, visual impacts to this stretch are limited to 5-10% of the time. No sensitive areas, such as Pulau Ubin or Changi Beach Park, will be affected.

Exposure to 10mg/l excess TSS for between 20% to 30% of the time (i.e. around 1 to 1.5 months in total) occurs in the area between Tg. Setapa and Teluk Ramunia (a distance of 14 km). The effect is hence localised and short-term, overall of Minor Adverse Impact.

Mitigation Measures:

Daily spill from the dredger shall be limited to 5,060 tonnes per day. This is determined by monitoring the overflow rate and times from the dredger, combined with regular sampling of the percentage fines in the overflow water.

6.1.2 Water Quality Dredging and reclamation works represent the key source of water pollution during the construction stage as discussed above. Apart from sediment plumes, other sources of water pollution during construction works include release of contaminants from dredged sediments, oil and grease spillage from the construction equipment, sewage and wastewater generation as well as storm water runoff from the construction site.

These sources will be of minor magnitude with the implementation of standard mitigation measures and management practices.


The recommended standard mitigation measures fall under the following key components:



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• Control of soil erosion from the reclamation/ construction site. • Provision of adequate sanitary facilities (septic tanks and portable toilets) and

maintenance during construction. • Vessels to comply with International Maritime Organisation (IMO) Guidelines with

respect to management of ballast water.

6.1.3 Air and Noise During the construction phase, the predicted maximum noise levels at the nearest sensitive receptors are within the daytime Lmax – 90 dBA specified under the DOE Planning Guidelines for Environmental Noise Limits and Control 2007.

Provided mitigation measures are in place to control dust emissions from the construction site, the predicted incremental maximum ground level concentrations of total suspended particulars are within the Recommended Malaysia Air Quality Guidelines of 260 µg/m3 (for 24 hours) and 90 µg/m3 (for 1 year).

Air and noise impacts during construction are therefore of minor significance.


Standard best practice measures are required to ensure impacts are maintained at minor levels, in particular, those to mitigate dust impacts, such as regular spraying of access and internal roads at the Project site and vegetating or sealing bare surfaces as soon as possible.

6.1.4 Terrestrial Ecology The area around the Project Site consists mainly of secondary vegetation whereby most of the area has been converted for plantation or agricultural landuse and hence are of low sensitivity. No terrestrial habitats will be impacted by the construction of the oil terminal except for the construction of access road to the Project Site and hence adverse impacts will be Negligible.

Mitigation Measures: No mitigation measures required.

6.1.5 Marine Ecology The key identified impacts to the biological habitats, communities and species within and around the Project site during the construction phase include: • Suspended sediment plume impacts. • Underwater noise and boat strikes affecting marine mammals.

These impacts will be minor with the implementation of mitigation and management measures for the control of sediment plume and to minimise the risks of boat strikes on marine megafauna.

Mitigation Measures: • Implementation of standard mitigation measures to control water pollution during

construction and operation stages.



• Report any identified/sighting of marine megafauna in the vicinity of the dredging area and initiate avoidance procedures where necessary.

• Implementation of emergency response plan for any accidental injury or strike of marine megafauna.

6.1.6 Socioeconomic Impacts Ample employment opportunities, at different levels and types will be created to meet the short-term demand during the construction. Indirect employment opportunities will be also created to meet the demand at newly developed supporting services and business centres with the available participation opportunities for local contractors in the project development. This is expected to be a Moderate Positive Impact.

Although recruitment from the local population will be prioritised, foreign workers and those from outside Johor state may be required for certain skilled works or to fill gaps in local labour supply. The arrival of these outsiders are not expected to impact significantly on the cultural values and customary practices of the local inhabitants, especially as most of the locals consulted did not expect any negative impacts. However, the presence of the construction workforce and potentially other in-migration may increase the pressure on public services/ as a result of the Project. Given the anticipated construction workforce of around 2,000, this is expected to be minor.

Impacts on health and wellbeing during construction will be minor provided mitigation measures are in place to address issues such as road and marine safety and air and noise pollution.


Mitigation measures include measures to maximise employment of the local population, minimise situations where conflict between foreign workers and local communities could occur and to minimise road and marine traffic risks. A key mitigation measure is Formation of Community Working Group and Fishermen’s Working Group to disseminate information on the project schedule and progress, to receive, discuss and evaluate grievances and expectations, and decide on and delegate action items.

6.2 Operation Stage

6.2.1 Morphological impacts on adjacent shorelines Sediment transport assessment has indicated a potential decrease in littoral transport rates offshore of the reclaimed area relative to existing conditions, with a resultant increase in potential erosion west of Tg. Kapal. It is difficult to quantify the actual rates of erosion due to the presence of rocky outcrops in the area; however, the erosion rates will not be significant.

Mitigation measures:

• Beach nourishment of 30,000 m3 west of Tg. Kapal.

• Coastal profile monitoring east and west of the Terminal site.



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6.2.2 Water levels and flooding There are four rivers/streams which drain into Kapal Bay. After construction of the reclamation, these rivers will discharge into a new channel that will be constructed along the shoreline.

Numerical modelling of the water levels in these rivers during high flow conditions was carried out for the existing and post-reclamation cases. The modelling has shown that impacts on water levels in the two smaller (unnamed) streams the bay will be negligible. In both Sg. Kapal and Sg. Buntu there are insignificant changes in water levels in the upstream area, however, downstream water levels increase by 10 to 13 cm during high tide and 11 – 15 cm during low tide. These slight increases in downstream water levels could potentially lead to a localised increase in flooding immediately around the mouths of these rivers during high tide. This impact is however limited to a maximum length of approximately 250 m in each river.


• Monitoring of water levels and flooding in downstream 250 m lengths of Sg. Kapal and Sg. Buntu. If any flooding occurs in these areas, river bank levels should be increased.

6.2.3 Water Quality Sources of water pollution during the Terminal operations include runoff water, wastewater, sewage, ballast water discharge, sediment plumes from maintenance dredging and major oil spills.

The impact of all these potential sources of water pollution from daily Terminal operations was evaluated to be negligible provided standard control measures are in place. Assessment of sedimentation rates indicates maintenance dredging requirements of approximately 1 million m3 every 3 to 5 years. This is significantly lower than the capital dredging volume and impacts are expected to be minor.

The risk of oil spill will persist throughout the operations of the Terminal owing to the nature of its activities. Despite the severity of the impact should an uncontrolled oil spill event occur, with high adverse impacts on fish fauna and marine mammals, the overall impact assessment takes into account the low probability of such a spill event occurring, as well as mitigation measures recommended to contain the spill. The impact assessment also takes cognisance of the higher risk of spills presently posed by the ship to ship transfers carried out in the area in the absence of facilities such as provided by the proposed Terminal. Hence the overall impact significance is a Moderate Adverse Impact.


• Implementation of wastewater treatment system at the Terminal with discharge water treated for compliance with the Environmental Quality (Industrial Effluent) Regulations 2009.

• Implementation of sewage management system including reception of sewage from international vessels and construction of sewage treatment plant in compliance with Standard B of the Environmental Quality (Sewage) Regulation 2009.

• Vessels to comply with International Maritime Organisation (IMO) Guidelines with respect to management of ballast water.



• Spill from the dredger during maintenance dredging shall be limited to 5,060 tonnes per day.

• Preparation of an Oil Spill Prevention and Response Plan should be formulated. • All the required oil spill response equipment shall be at hand and ready for immediate

deployment. • Oil Pollution Response Vessels shall be made available at the Terminal Jetty (such as

tugboats to be equipped with skimmers, etc.). • Emergency Release Coupling to be installed for all dirty product loading arms.

6.2.4 Air and Noise Impacts The principal noise pollution sources during operations are the loading pump stations and air compressors. Noise modelling has indicated that the cumulative noise levels at the sensitive receptors are below the stipulated limits except the noise level at SMK Tg. Datuk during nighttime. However, this is not significant as no school activities are conducted during the nighttime. With noise control measures implemented on-site, it is expected to further minimise the noise impacts to the surroundings.

The Terminal requires steam boilers to generate heat for heating of petroleum products. Gaseous emissions will be released via stacks and the pollutants emitted from these combustion activities are typically including particulate matters (PM), nitrogen dioxide (NO2), sulphur dioxide (SO2) and carbon monoxide (CO).

Apart from the boiler stacks, petroleum product storage tank will emit organic vapours or known as Volatile Organic Compounds (VOC) via its venting system.

Air dispersion modelling has shown that for both Terminal layout options the maximum incremental ground level concentrations of all pollutants are low and below their respective recommended limits. Baseline records indicates that total suspended particulates, sulphur dioxide and VOCs were below detectable limits (non-detect). However, unusually high baseline levels of nitrogen dioxide (NO2) were recorded at Kg. Sg. Buntu, that exceed (by almost double) the limit of 320 µg/m3 specified in the Malaysian Recommended Ambient Air Quality Guidelines. As such, although the maximum incremental GLC of NO2 is only around 38 µg/m3, the high baseline levels are exacerbated

For verification purpose, it is recommended that another ambient monitoring for NO2 prior to project implementation is carried out. Nevertheless, the predicted value is based on worst case scenario, where the six (6) boilers are operating simultaneously at full capacity and 24-hour non-stop. The actual pollutant concentrations are expected to be lower than indicated here during the terminal operations.


• A maintenance programme / schedule should be established to inspect and maintain vehicles and machinery periodically in particular the principle noise sources i.e. pumps and air compressors and air emission sources (i.e. boilers).

• Wall fencing and vegetation strip along the inland boundary to act as noise attenuation.



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6.2.5 Marine Ecology Impacts to the biological habitats, communities and species within and around the Project site during the Terminal operations include: • Underwater noise and boat strikes affecting marine mammals – Minor Adverse Impacts • Oil spill – Moderate Adverse Impacts

Although the actual effects of an uncontrolled oil spill will be severe, taking into account the low probability of occurrence and the recommended mitigation measures to control the spill, the impact can be considered a moderate impact.

Taking into account all of the above components, the impact of the Terminal development to the marine ecosystem in general is considered a Minor Adverse Impact.

Mitigation Measures: • Implementation of standard mitigation measures to control water pollution during

construction and operation stages. • Establish artificial reefs or lobster habitats in suitable areas to lure lobsters and fish to

aggregate.

6.2.6 Quantitative Risk Assessment The quantitative risk assessments carried out for the Project has determined that a buffer zone of 250m from the Terminal boundary is sufficient to accommodate the required safety separation between the Terminal and other land uses. The land within this buffer zone will be zoned as industrial land use to ensure that no residential areas or other incompatible land uses remain or are established in this area in the future. Hence the risk to safety of the surrounding communities is minimised to acceptable levels.

Mitigation Measures: • Establish 250m buffer zone between the Terminal and residential areas. • Installation of proper Lightning Protection System • Regular tank inspection regime with emphasis on rim seals. • Establish Emergency Response Plan (ERP) to cover both the terminal and associate

jetties (onsite) as well as an off-site ERP

6.2.7 Land use The 250m buffer zone from the Terminal boundary will be re-zoned to industry in order to safeguard the required safety buffer from the Terminal. Within the 250m buffer zone from the Terminal boundary there are between 43 and 47 land parcels (depending on the layout option) belonging to private individuals. Incompatible land uses within this buffer zone will need to be relocated.

There are between 9 - 12 houses involving up to an estimated 60 people within this buffer zone. This is considered a severe impact on the affected individuals, however, in the context of the larger population within these villages (1,614 persons), the overall impact on society is moderate.



6.2.8 Socioeconomic Impacts There are a number of socioeconomic impacts during the operation stage, including positive impacts due to the anticipated economic benefits from the Terminal and service and support businesses. There are however a number of residual adverse impacts which are highlighted here.

6.2.8.1 Relocation of Residents within Terminal Buffer Zone

The layout of the Terminal has been optimised to avoid concentrations of residential areas near the shoreline, such as Kg. Sg. Kapal, falling within the 250 m buffer zone. The land area within the buffer zone is around 176 acres encompassing 13 houses for Option 1; and 171 acres encompassing 11 houses for Option 2. The residents of these houses will need to be relocated out of this buffer zone area.

The social impact where relocation of residents is involved is a High Adverse Impact. However, given the predominantly positive response of the local inhabitants to relocating with the offer of compensation in the form of new housing, the overall social impact with such compensatory measures is a Moderate Adverse Impact.

6.2.8.2 Impacts to fisheries

The loss of fishing grounds and the three fish landing jetties within Kapal Bay is a permanent and irreversible impact. Despite the compensatory measures proposed (establishment of artificial reefs, construction of fish landing jetties in other locations and monetary compensation for loss of income during the construction stage), there is still a residual level of disruption to the fishermen’s activities. However, as long as the dialogue through the Fishermen’s Working Group achieves its aim to ensure consensus decision-making on the above measures, the residual impact can be reduced to a moderate level.

6.2.8.3 Impacts to Tourism

The impact to tourism is primarily limited to the operations of the Tg. Kapal Beach Resort. Although it is outside the 250 m buffer zone from the Terminal boundary and thus the risk to safety is within acceptable levels, the nature of its tourism product will be changed given that the Terminal will be an obvious visual feature from the resorts’ view catchment during the construction and operation stages. The impact on this resort is therefore classified as a High Adverse Impact. As such, suitable mitigation measures will need to be explored with the owners of the resort, for example compensation or relocation. With the achievement of a satisfactory outcome for these owners, the impact will be reduced to a Moderate Adverse Impact.

6.2.8.4 Impacts to Industries within Terminal Buffer Zone

There are three industries along Kapal Bay that are dependent upon their current location along the shoreline. These are the two shrimp paste (belacan) processing factories and a boatyard. The belacan factories have constructed jetties to land the shrimp catch while the boatyard also launches their boats directly across the beach. These industries lie within 200 m from the Terminal boundary. While these industries may be compatible with the proposed industrial land use for the 250 m buffer zone from the Terminal boundary, they will in all likelihood be forced to cease operations at this location as the loss of shoreline



62800225.01 Final DEIA/1010

access may render their businesses non-viable. Hence the impact to these individual industries is very severe, with an initial evaluation of High Adverse Impact. Again, the Proponent and owners of these enterprises need to enter into discussions to explore whether it is viable to continue operations in their current location with some compensation from the Proponent or whether relocation needs to be considered. With the implementation of compensatory measures based on stakeholder engagement, a residual impact of moderate significance can be attained.


Mitigation measures include measures to maximise employment of the local population, and compensatory measures for the impacts to the affected residents, fishermen and businesses.

A key mitigation measure is Formation of Community Working Group and Fishermen’s Working Group to coordinate and discuss the details of the proposed compensatory measures.

6.2.9 Land Traffic Impacts on traffic during the Terminal operations will be negligible given the limited personnel onsite and limited land transport of materials and additives required during operations. No specific mitigation measures are required.

6.2.10 Marine Traffic An additional 39 vessel movements per day is anticipated for the final development of the proposed facility. This represents an approximate 17% increase in vessel traffic in the area, with a high percentage of the projected marine traffic comprising bunkering tankers from 2,000 up to 8,000 DWT.

It is therefore concluded that this additional shipping traffic can be operated safely together with the existing traffic, and that the impact of the additional shipping on the existing shipping traffic will be low.


• All vessels heading to / from the jetty should use a qualified pilot. • Vessel traffic should be coordinated through the existing Johor Port Control. In

addition a local Vessel Traffic Service (VTS) is set up to coordinate and monitor the vessel traffic in the immediate vicinity of the proposed port. This can increase the safety of the marine traffic in the area considerably.

7 RESIDUAL IMPACTS

The impact assessment has shown that the majority of the environmental impacts associated with the Project are reduced to acceptable levels with the implementation of the recommended mitigation and management measures. However, some residual impacts will remain after all mitigation measures are instituted, in most cases related to the disruption of businesses and the relocation of residents within the 250 m terminal buffer



zone area as well as the inherent risk of oil spill during the Terminal operations. These residual impacts are of moderate significance.

8 ENVIRONMENTAL MANAGEMENT PLAN

8.1 Management of Construction

8.1.1 Dredging and Reclamation Monitoring and Management Strategy A feedback monitoring strategy will be utilised for the Environmental Management Plan (EMP) of the dredging and reclamation works. Feedback monitoring encompasses control measurements at the spill from the dredger/ reclamation site in combination with sediment plume models to keep a running balance of cumulative impact levels based on actual production and measured spill against the required threshold limit of 5,060 tonnes per day.

The sediment plume model also includes a current forecast model, such that any intermediate construction stage impacts can be assessed. The use of spill measurements and modelling allows the monitoring and management system to be responsive to changes in conditions (e.g. seasonal effects) and work schedules, which is not possible utilising traditional impact assessment and monitoring methods.

8.1.2 Impact Areas It is proposed that the Terminal EMP should adopt an impact area classification as follows, with the exact area to be demarcated in the Final EMP: • The direct impact area covers the reclamation and dredging areas and all areas within

100 m of these areas. • The primary impact area is presently defined as areas around 9 km west of the Project

Site to around 7 km east of the Project Site. • The secondary impact area extends beyond the primary impact area up towards Sg.

Santi to the west and to Tg. Sepang in the east. The definitions of the primary and secondary impact areas will be updated on the basis of the spill forecast simulations to be made once the layout option and the contractor’s detailed operating methods are known.

8.1.3 Environmental Management Plans The key environmental management issues that will be addressed by the EMP for Construction Phase are summarised in Table 1.

Table 1 EMP topics during construction phase.

Management Issue Scope Components

Suspended sediment control

Generation and excursion of sediment plumes at reclamation site

• Field monitoring of turbidity and TSS

• Site inspections for compliance monitoring

• Forecast and hindcast modelling. Noise Management of noise from the dredging and

reclamation as well as the construction phase • Monitoring of noise levels at

sensitive receptors



62800225.01 Final DEIA/1010


Air emissions Management of air emissions at reclamation site.

• Monitoring of suspended particulate levels at sensitive receptors

Water quality Waste management, storage and handling of hazardous substances on board the dredger and at reclamation site as well as ballast and de-ballast procedures

• Documentation of compliance

Drainage and localised flooding during reclamation

Monitoring the drainage and flooding incidents and ensuring existing stream outlets are free of blockage due to construction material or siltation from the construction site.

• Water level monitoring in Sg. Kapal and Sg. Buntu.

• Site inspections for compliance monitoring

Coastal Morphology Monitoring of impacts to shorelines adjacent to the project site

• Monitoring of coastal profiles perpendicular to the shoreline

Ecology Management of impacts to lobster abundance and marine megafauna

• Documentation of sightings of marine megafauna

• Monitoring of lobster abundance Maritime Safety Management of the marine traffic and safety • Documentation of compliance

with mitigation measures • Documentation and reporting of

any incidents Land traffic Management of the land traffic and safety • Documentation of compliance

with mitigation measures • Site inspections for compliance

monitoring Socio-economy Management of human environment issues. • Documentation of compliance

with mitigation measures. Contingency Planning and Emergency Response

Emergency preparedness to manage marine dredging and construction works.

• Marine collision around work area;

• Wildlife incident • Weather and climatic events

8.2 Management of Operations The key environmental management issues that will be addressed by the EMP for Operational Phase are summarised in Table 2.

Table 2 EMP topics for operational phase.


Ecology Establishment of artificial reef areas. • Documentation of compliance

Socio-economy Management of socio-economic issues. • Documentation of compliance through post-construction survey of residents and Working Groups

Air Quality Management of Terminal air emissions. • Monitoring of boiler stack emissions

• Ambient air quality monitoring at sensitive receptors




Water Quality Management of water quality around the Terminal

• Monitoring of effluent discharge quality

• Water quality monitoring in the interceptor channel.

Water Levels and Flooding

Management of flooding • Water level monitoring to be continued from construction stage

• Maintain records of any flooding incidences

• Documentation of compliance – construction to increase the bank levels of Sg. Kapal and Sg. Buntu if any flooding is reported along the downstream stretches.

Coastal morphology Monitoring of shoreline change adjacent to the Terminal.

• Coastal profile monitoring to be continued from construction stage

Contingency Planning and Emergency Response

Emergency preparedness • Marine collision at terminal area • Fire on vessel or on terminal • Pipeline failure/oil spill • Wildlife incident (marine

megafauna) • Offsite emergency response

plan.

9 CONCLUSION

The DEIA has found that the Project development will result in some potentially significant impacts to the biophysical and socioeconomic environment. However, with the implementation of the recommended mitigation measures together with compliance and impacts monitoring it is expected that the effects will be acceptable from an environmental and social perspective. In addition, the Project will result in a number of positive impacts that will benefit the government and people of Johor on a broader scale.

RINGKASAN EKSEKUTIF

62800225 final executive summary[1]

Documents

project location

project siting

project description

project components

project options

site location

key environmental impacts

johor contents