PDZ Holdings Berhad (PDZ -stock code 6254), an established container liner, has inked a Memorandum of Understanding (MoU) with PT Indonesia Bulk Carier (IBC Group), to provide maritime logistic solutions in Indonesia.
This is part of its plans to expand regionally and to provide maritime logistic solutions comprising of 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.
“Negotiations are on-going with IBC, to further support the container liner business between Malaysia and Indonesia, coupled with dry bulk transportation deals, which is expected to contribute positively to PDZ’s profits”, says PDZ CEO cum Executive Director, Tan Chor How.
Last week, PDZ announced that it is undertaking a cash call exercise with Mercury Securities as its Principal Advisor, via a rights issue with free warrants, to raise up to RM43m 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, working capital and corporate exercise fees.
The Bursa main market listed company said in a media statement today the focus is to expand its footprint regionally, partnering reputable maritime industry leaders.
IBC 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 and continues to grow its fleets to further enhance the Indonesia national Maritime Industry.
“Our focus is to expand our footprint regionally, partnering reputable maritime industry leaders, who shares the same vision to take advantage of the growing trade in ASEAN.” said PDZ CEO Christopher Tan.
Tan said Indonesia offers tremendous potential growth for sea transportation as it is located among
some of the world’s busiest sea lanes, whose economies grouped under the ASEAN in particular, is buoyed by strong freight demand in the region which plays a crucial part in the global maritime transportation.
The growth of the Indonesian manufacturing sector resulting in rising exports while imports continue to benefit from its vibrant consumer spending, construction of new ports bodes well to the rising demand for maritime logistic solutions on the back of growing global economy and international trade, said the media release.
It said that Smith Zander forecasts that global trade industry will increase from USD32.3 trillion in 2017
to USD33.3 trillion in 2019, and world container traffic to grow from 770.1 million twenty-foot equivalent units (TEUs) in 2016 to 873.2 million TEU in 2018, as containers are a popular way to deal with increased global sourcing, manufacturing and distribution.
Global trade is driven by trade in the Asia region, which is the largest in value and experienced the highest growth between 2010 and 2016.
Trade in Asia grew from USD10.9 trillion in 2010 to USD12.5 trillion in 2016, at a compound annual growth rate or CAGR of 2.4%. In 2016, trade in Asia contributed to 39.2% of total global trade. (Source: Independent market research report by SMITH ZANDER)
IBC’s reputable customers include, GLENCORE INTERNATIONAL, HAI YIN GROUP, SINARMAS GROUP, SLM, BUKIT ASAM GROUP, INDOCEMENT HEIDELBERG CEMENT GROUP, just to name a few.