Business

Tenaga signs deal to ferry coal from Indonesia

The agreements signed by Tenaga's subsidiary gives opportunities to four local shipping companies.

The agreements signed by Tenaga's subsidiary gives opportunities to four local shipping companies.

Syndicated News
Written by Syndicated News

By Othman Abu Bakar

KUALA LUMPUR — April 26, 2016: Tenaga Nasional has signed long-term contracts with four local shipping companies to ferry coal from Indonesia to Malaysia.

In an announcement to Bursa Malaysia today, Tenaga said the contracts are for 10 years for secondhand vessels and 15 years for a new vessel.

The long term contracts of affreightment (COA) are under Tenaga’s subsidiary TNB Fuel Services Sdn. Bhd. (TNBF).

The local shipping companies are:

* PNSL Berhad (2 contracts), both for secondhand vessels with estimated contract values of about US$99 million and US$94.5 million respectively.

* Prima Shipping Sdn. Bhd. for a secondhand vessel with an estimated contract value of US$99 million.

* Duta Marine Sdn. Bhd. for secondhand vessel with an estimated contract value of US$100.5 million.

* Malaysian Bulk Carriers Berhad for a new vessel with an estimated contract value of US$143.1 million.

Tenaga said the COAs reflect TNBF’s commitment in promoting and nurturing the growth of Malaysian-owned shipping companies which eventually will allow them to own and/or operate Malaysian flagged vessels.

Simultaneously, the contracts allow TNBF to diversify its freight contracts’ portfolio to 60% term COA, 20% spot contract and 20% long term COA, subject to market conditions.

Comments

comments

About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.