Professional Documents
Culture Documents
SEMESTER 1
1
EXECUTIVE SUMMARY
Furthermore, coastal development also brings another bad impact on the environment
like changing the groundwater system which impacts the groundwater resources of Tanjung
Piai because of the destruction of essential habitats. Another impact of coastal development is
the degradation of the marine benthic ecology. This situation happened when the ecosystem
was destroyed including mudflats, seagrass meadows, and coral reefs then caused a change in
species composition or a net loss in biomass and abundance of the fauna. Elimination of the
buffer zone is also one of the bad impacts of coastal development. Since coastal ecosystem
degradation is usually associated with coast reclamation, these ecosystems operate as natural
boundaries to wave energy and lessen the impact of waves on coastlines, avoiding erosion
and flooding brought on by wave action. Not forgotten either, coastal development also
causes coastal erosion where the flow during the tide tends to go in the opposite direction.
This issue should not be underestimated by society since it can bring death. Therefore, coastal
development also contributes to habitat destruction because it will result in an oil spill along
the coast. The habitat near the coast will be dead by the oil pollution and indirectly this
problem can cause the extinction of a habitat. That’s why environmental awareness is very
important to society and can’t be underestimated.
2
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
INTRODUCTION 5
DISCUSSION 6
1.0 BACKGROUND OF SELECTED CASE STUDY (INTEGRATED HUB AND
MARITIME INDUSTRIAL PARK, TANJUNG PIAI, JOHOR) 6
2.0 CURRENT STATUS OF SELECTED CASE STUDY (INTEGRATED HUB AND
MARITIME INDUSTRIAL PARK, TANJUNG PIAI, JOHOR) 8
3.0 POTENTIAL IMPACT OF COASTAL DEVELOPMENT TO EXISTING
ECOSYSTEM 11
3.1 CHANGES TO THE GROUNDWATER SYSTEM 11
3.2 DEGRADATION OF THE MARINE BENTHIC ECOLOGY 12
3.3 ELIMINATION OF THE BUFFER ZONE 13
4.0 IMPACT OF COASTAL DEVELOPMENT ON THE EXISTING ECOSYSTEM 14
4.1 COASTAL EROSION 14
4.2 HABITAT LOSS 15
4.3 COASTAL WATER POLLUTION 17
CONCLUSION 18
REFERENCE 19
APPENDIX 20
3
INTRODUCTION
The phrase "coastal development" refers to how people have changed the area all
along coast. This entails developing structures for safety, trade, communication, or leisure
generally along the coast. These structures offer assistance for economic and social activity
that could have positive or negative effects on the marine areas. Currently, 100 kilometres or
less from the coast is home to 2.5 billion people, or 40% of the world's population, which puts
additional pressure on coastal ecosystems. Coral reefs as well as other near-shore ecosystems
may be negatively affected by construction, commerce, agriculture, and residential areas
along the coast.
Indirect implications of coastal development include increased flow of pollutants and
sediment. Direct effects include landfilling, dredging, and mining of corals and sand for
construction. For Malaysia's economy and ecology, the coastal region is crucial. It provides
employment for a sizable section of the population and acts as the focal point for economic
activities including urbanisation, agriculture, fisheries, agriculture, gas and oil extraction,
transportation and communication recreation, etc. For the discussions that follow, the coastal
zone's landward limit of 5 km has been selected as the basis for the estimation of the coastal
resources. The 3,485-acre Tanjung Piai Maritime Industrial Park (MIP) was indeed a
man-made island that was intended to be reclaimed off the southwest coast of Johor. Tanjung
Piai MIP can accommodate the biggest ships and boats in the world thanks to its naturally
deep water, which may reach a depth of 30 metres. At the intersection of the Malacca,
Singapore, and Johor Straits, it was strategically situated. One of the most significant
petrochemical and refining hubs in the world, Jurong Island, was only 17 kilometers away
from Tanjung Piai MIP. Tanjung Piai MIP would eventually be able to accommodate all
significant upstream, midstream, and downstream oil and gas operations. Back in 2013,
BENALEC had signed a settlement agreement with the State Secretary of Johor and 1My
Strategic Oil Terminal (1MY) for the revitalization works and sale of roughly 1,000 acres of
land off the coast of Tanjung Piai in order to build and run an oil storage facility for crude oil
and petroleum as well as a private jetty.
4
DISCUSSION
Off the south-western coast of Johor, a 3,485-acre man-made island by the name of
Tanjung Piai was home to the Maritime Industrial Park (MIP). Tanjung Piai MIP was able to
accommodate the largest ships and vessels in the world with to its natural depths of up to 30
metres. It was advantageously positioned at the confluence of the straits of Malacca,
Singapore, and Johor. One of the biggest petrochemical and refining hubs in the world,
Jurong Island, is around 17 kilometres from Tanjung Piai MIP. The Tanjung Piai MIP, which
would eventually be built, could manage all significant upstream, midstream, and
downstream oil and gas operations.
In 2013, BENALEC signed a new contract with the State Secretary of Johor and 1MY
Strategic Oil Terminal (1MY) for reclamation projects and the purchase of around 1,000
hectares of land off the coast of Tanjung Piai, as well as for the development and operation of
petroleum products and oil storage facilities and a private jetty. After four extensions,
BENALEC's agreement for the planned reclamation operations in Tanjung Piai expired in
June 2015, and the company did not intend to pursue the case further. Therefore, BENALEC
must keep looking for additional prospective clients/buyers for the recovered property in
Tanjung Piai. The Department of Environment (DOE) granted BENALEC approval for all
three phases of the Tanjung Piai Integrated Petroleum and Petrochemical Hub and MIP
development in Johor in June 2016.
In January 2015, the first phase of a 1,080-acre reclamation area was approved. The
second and third phases were for the remaining 2,407 acres of the entire 3,447-acre
reclamation area. The permission included reclamation development for all three stages of
Tanjung Piai MIP, oil storage facilities, and other maritime infrastructure that can
accommodate vessels up to 350,000 deadweight tons.
5
After obtaining the necessary licenses, the phase 1 reclamation work began in
December 2016. According to the 2016 Annual Report, approximately MYR 142 million has
been spent on the development of the Tanjung Piai project to date.
6
2.0 CURRENT STATUS OF SELECTED CASE STUDY (INTEGRATED HUB AND
MARITIME INDUSTRIAL PARK, TANJUNG PIAI, JOHOR)
Currently, TPMIP developments can benefit from fresh financial initiatives as from
Malaysian government. The government has started the short-term National Economic
Recovery Plan under the process of recovery of the Civil Movement Control Order (MCO), a
series of laws designed to limit the spread of COVID-19 in the nation (PENJANA).
PENJANA incorporates colourful commercial duty incentives to entice foreign businesses to
relocate their operations to Malaysia. It is intended to rekindle and promote the original
frugalness as Malaysia attempts to recover from the COVID-19 pandemic. From July 2020
until December 2021, the new impulses are in effect.
7
A 0 commercial duty rate is now applied 10 times to new investments in industrial
sectors with capital investments between MYR 300 million and 500 million (€ 61 million and
102 million). More than MYR 500 million in capital investment is subject to a 15-time period
of 0 percent commercial duty. Within one year of the blessed date, businesses must set up
shop in Malaysia, and the investment amount must be made over three years.
Source: MarketScreener.com
The COVID-19 pandemic as well as the MCO had a huge influence on the economy
in Malaysia, completely halting the most lucrative endeavour. In particular, the rapid-fire
design has been delayed as a result, along with other structure systems in the region. The
outbreak further advanced the date of commercial operation, which was previously postponed
by two distinct fires and explosions that occurred during the erection process in April 2019
and March 2020. The commercial operation date is now tentative-2021.
8
Aside from the current epidemic scenario, the other structural demand condition that
has been hurting industry oil painting and gas assiduity is the deflation of the crude oil
painting price through April 2020 because of the poor world market and the tapering of
OPEC force cuts. This led to a persistent contango request structure (where forward values
are more advanced than spot prices), which increased the number of floating warehouse
vessels in Singapore and Johor as well as the number of onshore storage tanks that were filled
to capacity. According to Mike Beviss, senior commercial counsel at Benalec, this is expected
to alleviate as the COVID-19 situation is getting better and as the demand for oil paintings
eventually increases globally with a perfecting economy.
The state of the world economy is still incredibly hazy. While COVID-19 is ostensibly
under control in many places, local flare-ups persist. As the Northern Hemisphere returns to
its downtime, a different surge is heavily threatened and would have further detrimental
effects on global thrift. However, not all is gloom and doom for TPMIP. Despite the region's
truly terrible financial state, there are still some promising developments. Despite weight boat
trips at one point hitting a 27-time low, Singapore, the world's largest bunkering destination,
had an increase in collateral arrangements from January to June 2020 when compared to the
same period last time, claims Beviss.
Sources: MarketScreener.com
9
He continues, saying that it is accepted that this is what happened as cellular
customers moved away from Fujairah, located on the Gulf of Oman, and toward Singapore as
a consequence of political and security concerns all around the Strait of Hormuz. According
to the latest statistics (2018), 21% of the world's consumption of oil paintings—or roughly 21
million BPD—pass through this short strait that connects the Persian Gulf with the Gulf of
Oman and the Arabian Sea. There have recently been concerns that Iran may utilise the Strait
of Hormuz as a disruptive technique to prevent oil tankers from going through, damage the
global oil painting industry, and so drive up oil painting prices as a result of increasing
pressures between Iran and the US.
The International Maritime Organization's IMO 2020 regulations, which limit the sulphur
content of cellular power to 0.5, have caused customers to look to Singapore, where the
requisite energy is available even without quality or friendliness businesses of other locations,
according to Beviss. TPMIP is not the only venture in the region that aspires to gain from the
IMO 2020 standards. The previously announced new Vitol refinery will generate IMO 2020
biddable cellular energy.
Naturally, with all of these changes and tendencies in the areas close to Johor,
storehouses and the strategic locations required for new tanks will rise in value, and TPMIP is
perfectly situated to benefit. According to Law, "Benalec remains confident from the
aforementioned that our two property recovery and growth systems in Johor stays workable
for investment opportunities in the oil painting, renewables, chemical, and gas requests as
well as for everyone looking to position themself to take advantage of the inevitable
upcoming rise in these demands as the world demand recovers from its current lows."
10
3.0 POTENTIAL IMPACT OF COASTAL DEVELOPMENT TO EXISTING ECOSYSTEM
Coastal development is any construction done by people along a coastline with the
intention of boosting tourism. Coastal development consists of buildings or other facilities
constructed to offer services including housing, dining, shopping, and other forms of
entertainment. Natural areas that are altered along the shore to draw or accommodate tourists
are also referred to as coastal development. Building hotels, removing seagrass or woods to
expand the size of the beach, or creating marinas for boat storage are examples of coastal
development. Additionally, because coastal development has an impact on the ecosystems
and the surrounding natural scenery, it is important to properly balance its benefits and
drawbacks. Governmental organisations may safeguard some coastal lands to protect the
region's coastal ecosystems, but they may also sell off some coastal areas for development.
Because they are located inland, inland buildings are not regarded as coastal development.
(Johnson, 2022)
However, these buildings provide a foundation for economic and social activity that
may have positively or negatively impacted the coastline, including existing ecosystems. An
ecosystem is an area where different species of animals, plants, and other living creatures
coexist to form a bubble of life. (Stanley, 2022)
The land reclamation process in Tanjung Piai may have an impact on the local area's
groundwater resources. This is so because the destruction of essential habitats like mangroves
and mudflats increases the effects of waves on coastal areas and leads to groundwater
intrusion. Due to the altered alkalinity of the soil, which renders it unsuitable for plant
growth, particularly that of species impacted by variations in salinity, this will have an effect
on agricultural areas close by. Another scenario that is probable is that the recently reclaimed
land, which inhibits natural agricultural drainage, will cause water tables to rise, resulting in
seawater intrusion and aquatic systems in soil and groundwater. (Sahabat Alam Malaysia,
2022)
11
Nevertheless, some people thought that the reclamation process raised the level of
water in the original reservoir and caused the interface between saltwater and freshwater to
shift toward the sea. Because of increased recharge and aquifer size following reclamation,
the clean water resource has grown. (Sahabat Alam Malaysia, 2022)
12
Bottom dwellers will be buried and suffocated because of dredging operations and the
installation of fill materials, which will also result in the permanent loss of benthos habitat.
The removal of marine sand disturbs and destroys benthic organisms and epifauna. Another
factor that contributes to the decline of the marine benthic ecosystem is the alteration of
erosion composition brought on by dredging and backfilling. Sediment composition has a big
impact on how the benthos are distributed. Only where the original sediment composition is
being recovered can the benthic ecosystem experience long-term recovery. (Sahabat Alam
Malaysia, 2022)
13
4.0 IMPACT OF COASTAL DEVELOPMENT ON THE EXISTING ECOSYSTEM
Tanjung Piai, Johor, Malaysia, is a Ramsar site that consists primarily of mangrove
forests and is located at the southernmost tip of mainland Asia. Despite the construction of
various coastal defence structures. For decades, the coast has been eroding severely. Because
the flow entering the study region during flooding was reflected in the east, whereas the flow
during the tide tends to go in the opposite direction, this suggests that some local current
patterns are generated near the tip as a result of the presence of a tiny island. These factors,
along with the regular presence of ship wakes, are thought to be the root cause of Tanjung
Piai's severe erosion. The coastal expansion, waves produced by high shipping activity that
interfered with the growth of the existing mangroves, oil spills, and water pollution from ship
cleaning processes were the main causes of erosion at Tanjung Piai (Aslinda,2014).
According to reports, Tanjung Piai's east coast has been eroding since at least the
1930s. Similar to this, Tanjung Piai's western coast was also experiencing serious erosion at a
pace of roughly 2- 4 m/year (Abdullah, 1992). The erosion accelerated following the dredging
of a navigation channel in 2002 (DID, 2013). Figure 4.2.1 presents a shoreline comparison
between 1974 to 2011.
14
Figure 4 shows Tanjung Piai shoreline changes due to coastal erosion from 1974 to 2011.
(DID,2013)
15
Figure 5 shows Tanjung Piai's closure due to oil spill forces (New Straight times, 2012)
According to figure 5, oil spills have impacted Tanjung Piai's western edge, causing the
mangrove forest to naturally erode. It's been noticed that Tanjung Piai's seaward mangrove
region is undergoing die-back and erosion.
Coastal development takes many forms such as marinas, and convention halls. As
highways and concrete fill streams and wetlands, the ecosystem is unable to digest natural
chemicals. Even worse, chemicals that come along with development might harm specific
trees or whole areas of mangroves. Developments bring with them traffic, all of which have
an adverse effect on the ecosystem that lives in the diverse coastal habitats (Ibrahim,2007).
16
Despite their toughness, mangroves can only take so much industrial and agricultural
pollution before they die. The growth and population composition of mangroves may change
as a result of variations in precipitation, according to research. Streams are routinely diverted
for agricultural purposes or covered over for roadways, which further alters the water's
natural flow. Due to their adaptation to tidal variations, mangrove forests are vulnerable to
such changes in their environment. (Rusli, 2011).
17
CONCLUSION
To summarise the whole content of Tanjung Piai Maritime Industrial Park (MIP), it
could accommodate the world’s largest ships and vessels and is also well-known for having
the most substantial refining and petrochemical intersections. There were also incidents
affecting MIP in 2013, 2015, and 2016 economically and financially due to the new contract
that BENELEC signed. The spread of Covid-19 has influenced the developments at TPMIP
as the recovery phase of the mannerly Movement Control Order (MCO) has been launched.
PENJANA, which is the short-term program introduced to revive and stimulate the original
economizing was implied to enhance the developments as the pandemic has caused
destruction to economic growth. In last words, coastal areas are under considerable tension
from environmental modifications and transformation, by providing important outcomes for
all the parties such as both the human and environmental systems.
18
REFERENCE
Abdullah, S., 1992. Coastal erosion in Malaysia. Problems and challenges. In: HD Tija and
SMS Abdullah (eds.). The coastal zone of Peninsular Malaysia. Universiti Kebangsaan
Malaysia, Bangi, 80-92
DID (Department of Drainage and Irrigation), 2013. Projek pengawalan hakisan pantai di
Tanjung Piai, Pontian, Johor(Erosion control projects at Tanjung Piai, Pontian, Johor). Paper
presented at Seminar on project/study implementation at Tanjung Piai Ramsar Site, Johor, 16
July 2013 at the Ministry of Natural Resources and Environment, Putrajaya (in Malay)
H.M Ibrahim, and N. Khalid. 2007. Growing shipping traffic in the Straits of Malacca: Some
reflections on the environmental impact. The document was presented at the Global Maritime
and Intermodal Logistics Conference, Singapore, 17-18 December 2007. 20 pp.
Nor Aslinda, A.; Wan Hasliza, W.J., and Mohd Radzi, A.H., 2014. Coastal erosion at Tanjong
Piai, Johor, Malaysia. Coastal Erosion and Management along Developing Coasts: Selected
Cases Journal of Coastal Research, Special Issue, No. 71, pp. 122–130
New lands for new oil terminals | Benalec. (2020, September 16).
Othman, A. F., & Heng, S. B. (2012, June 28). Oil spill forces park closure. New
Straights Time.
Pawlukiewicz, Michael, Prema Katari Gupta, and Carl Koelbel. Ten Principles for Coastal
Development. Washington, D.C.: ULI–the Urban Land Institute, 2007
Priyandes.A.,& Majid. M. Rafael. (2009) Impact of the Reclamation Activities on the
Environment Case Study: Reclamation in Northern Coast of Batam. Jurnal Alam Bina, Vol.
15, pp. 21-34
19
Rusli, M.H.M., 2011. The Impacts of Shipping on the Marine Environment of Critical
Maritime Chokepoints: A Study of the Straits of Malacca and Singapore. The document was
presented at the 2nd World Biodiversity Congress, Kuching, Sarawak, Malaysia
20
APPENDIX
NAME CONTRIBUTIONS
21