The 2005-built, Indonesia-flagged 241-teu Sinar Panjang was sold to an unnamed third party and the sale proceeds will be used for working capital and business expansion of the group, Samudera said in a stock market announcement.
Based on the vessel’s book value of $1.2m, the group will take a slight net loss of $23,000 on the sale after taking into consideration sales costs. Sinar Panjang was making losses in FY2016.
Under current Indonesian shipping laws, Samudera is restricted from owning and registering new Indonesia-flagged vessels, and as such the group will not be able to acquire new Indonesia flagged vessels to rejuvenate aging and/or non-competitive local trade vessels.
As such, “the group has adopted the strategic approach of gradually selling or scrapping Indonesia flagged vessels,” Samudera said.
Once all its Indonesia flagged vessels are sold or scrapped, Samudera will pull out of the cabotage trade, it added. However, the group will continue to provide shipping services for international routes from and to Indonesia as well as potentially investing in a minority stake in an Indonesian company which provides shipping services for domestic routes within Indonesia.
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