PDZ Holdings Bhd is set to expand into the Indonesian market following a preliminary agreement with PT Indonesian Bulk Carrier (IBC) to collaborate on providing total maritime logistics solutions for the shipping industry in both Malaysia and Indonesia.
KUALA LUMPUR (infolog): Under the Memorandum of Understanding (MoU) inked, they will jointly provide services like container liner, bulk cargoes, tug and barge, self-propelled barge, oil and gas support vessels, and other related services like vessel chartering, pooling management, shipping consultancy and crew management.
The MoU is in line with PDZ’s regional expansion plans, PDZ said. It also highlighted that the Indonesian sea freight industry is projected to reach US$25 billion (RM100.24 billion) by 2020, with container volume of over 50 million TEU or twenty-foot equivalent unit.
“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.
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 CEO-cum-executive director Christopher Tan.
He added that negotiations are ongoing with IBC for PDZ’s participation in the container liner and dry bulk transportation business.
IBC has been involved in Indonesia’s shipping industry for over two decades, with customers such as Glencore International, Hai Yin Group, Sinarmas Group, SLM, Bukit Asam Group and Indocement Heidelberg Cement Group.
PDZ is also undertaking a rights issue with free warrants to raise up to RM43 million to support its regional business.
The money raised will be used to buy vessels, container tug and barge, dry docking expenditure, containers, security deposits, acquisition/investments in other complementary assets, and working capital.
PDZ shares slipped 0.5 sen or 3.7% to 13 sen today, giving it a market capitalisation of RM34.77 million. (theedgemarkets.com/ac)