PDZ expands into RM100b Indonesian shipping industry

PDZ expands into RM100b Indonesian shipping industry
Farah Adilla 10 January 2018 https://www.nst.com.my/business/2018/01/323359/pdz-expands-rm100b-indone...

KUALA LUMPUR: Container liner PDZ Holdings Bhd has inked a Memorandum of Understanding (MoU) with PT Indonesia Bulk Carrier, in its move to expand into the Indonesian maritime industry.

The deal is 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, in line with the PDZ’s regional expansion plans.

Indonesian seafreight is projected to reach US$25 billion (RM100 billion) by 2020 with container volume of over 50 million twenty-foot equivalent unit (TEU).

“Our focus is to expand our footprint regionally, partnering with a reputable maritime industry leader, who shares the same vision to take advantage of the growing trade in ASEAN. PDZ has been waiting for a long time to penetrate into the Indonesia shipping market,” said PDZ chief executive officer cum executive director Tan Chor How.

Indonesia is currently amongst the largest exporter/depositor of some key commodities/minerals including crude palm oil, coal, tin, nickel and bauxite.

“Indonesian shipping laws for foreign investment and cabotage policy requires partnership with local Indonesian players.

“This partnership with the reputable IBC Group opens up PDZ’s expansion into the Indonesian market and is expected to contribute positively to PDZ’s profitability with its favourable tax regimes and government initiatives,” said Tan.

PDZ said it is also undertaking a cash call exercise, via a rights issue with free warrants, to raise up to RM43million 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.

“With these strong business sentiments worldwide, we at PDZ believe that 2018 is the best time to expand our services,” said Tan.