Hubline gets a shot in the arm
Firm signs MoU with PetChem unit for provision of liquid chemical transportation business
PETALING JAYA: Sarawak-based shipping company Hubline Bhd got a shot in its arm in its aspirations to expand its business beyond just transporting dry bulk cargo.
It signed a memorandum of understanding (MoU) with Petronas Chemicals Marketing (Labuan) Ltd (PCML) to explore the possibility of providing logistic services in the transportation of liquid chemicals.
The agreement is part of a fiveyear plan that the shipping company embarked to expand its businesses.
The company said that the collaboration will give it an advantageous platform to expand its existing dry bulk logistics services.
“The MoU creates no contractual relationship between Hubline and PCML but is aimed to provide a framework of cooperation and for any future term arrangement between the parties for dry bulk and liquid chemicals logistic services,” it said.
The company said in its announcement to Bursa Malaysia that both parties will agree to cooperate and collaborate into looking at Hubline’s five-year plan for it to develop its chemical vessel technical capability for PCML logistic requirements.
“Upon the satisfaction of this, both parties may enter into negotiations to secure term arrangements for dry bulk and liquid chemicals logistic services with PCML,” it said.
Hubline said that the risk factors involved in this MoU at this juncture was minimal and in the event the company enters into a term arrangement it would exercise due care in considering the risks and benefits associated.
Last year Hubline narrowed its losses compared to 2016.
Based on its unaudited results for the period ended September 30, 2017, it recorded a loss of RM18mil on a turnover of RM 92.23 mil.
In 2016, its chalked up losses of RM 91.1 mil on a turnover of RM 86.86 mil.
The MoU was signed by Hubline chairman, Ibrahim Baki and vice-chairman Datuk Richard Wee while PCML was represented by its CEO Shamsairi M. Ibrahim and head of supply and distribution Normah Basri.
Shamsairi said that with PCML’s cooperation, Hubline hoped to expand its reach into markets such as Australia, New Zealand and China, areas where Petronas also supplies products such as urea.
“Hubline has a fleet size of 25 sets of tugs and barges, fully deployed and servicing the niche South-East Asian dry bulk market. The current routes cover ports in Indonesia, Vietnam, Thailand, Singapore, and the Philippines, transporting cargoes such as coal, gypsum aggregates, sand, wood chip and scrap iron,” he said.
Meanwhile Bernama reported that the Sarawak government yes- terday signed a term sheet with Petronas for equity participation in Petronas LNG 9 Sdn Bhd (PL9SB), the owner of the ninth liquefied natural gas (LNG) production train (Train 9) in Bintulu.
Under the term sheet, Sarawak will take a 10% equity interest in PL9SB.
At the signing ceremony in Kuching, the state government was represented by state financial secretary, Datuk Seri Ahmad Tarmizi Sulaiman while Petronas was represented by its senior vice-president of corporate strategy, M. Firouz Asnan.
The event was witnessed by Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg and Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.
In a press conference later, Abang Johari expressed his gratitude to Petronas for Sarawak’s participation in the PL9SB.