PDZ To Make Foray Into Indonesian Shipping Industry
January 09, 2018 20:46 PM
KUALA LUMPUR, Jan 9 (Bernama) -- PDZ Holdings Bhd planned to expand into the Indonesian maritime industry with the signing of a memorandum of understanding with PT Indonesia Bulk Carrier (IBC Group).
In a statement today, PDZ said, the deal was to provide total maritime logistic solutions such as container liner, bulk cargoes, tug and barge, self-propelled barge, oil and gas support vessels coupled with other related services such as vessel chartering, pooling management, shipping consultancy and crew management.
PDZ Chief Executive Officer/Executive Director, Tan Chor How, said the company's focus was to expand its footprint regionally by partnering with a maritime industry leader who shared the same vision to take advantage of the growing trade in ASEAN.
“The company has been waiting for a long time to penetrate into the Indonesian shipping market.
"The Indonesian shipping laws for foreign investment and cabotage policy require partnership with local Indonesian players,” he said.
Tan said the partnership would open up PDZ’s expansion into the Indonesian market and was expected to contribute positively to the group’s profitability with its favourable tax regimes and government initiatives.
“Negotiations are on-going with IBC Group to participate in the container liner business in Indonesia, coupled with dry bulk transportation deals, as Indonesia offers tremendous potential growth for sea transportation as it is located among some of the world’s busiest sea lanes,” he said.
He said with these strong business sentiments worldwide, PDZ believed that 2018 would be the best time to expand the company’s services.
“We are optimistic that 2018 will be a fruitful year for our company," he said.
PDZ said it was currently undertaking a cash call exercise with Mercury Securities Sdn Bhd as its principal advisor, via a rights issue with free warrants, to raise up to RM43 million to support its regional business for acquisition of vessels, container tug and barge, dry docking expenditure, containers, security deposits, acquisition/investment into other complementary businesses/assets and working capital.
PDZ said the Indonesian seafreight was projected to reach US$25 billion (US$1 = RM4.00) by 2020 with container volume of over 50 million twenty-foot equivalent units.
“The IBC Group is a reputable shipping industry player in the Indonesian market, operating out of its head office in Jakarta, Indonesia with over 20 years of management experience in the maritime industry,” it said.