Local reports cited group financial controller Richard Ling as saying that said Syscorp launched its services within Indonesia during the last quarter, and its coastal vessels are trading between ports there. Among the commodities seeing transportation demand are animal feeds and related food products, however the plan to move into the more lucrative iron ore trade is still being put into place for the second half..
Syscorp has made prudent investments in Indonesia, with its Indonesian unit PT Shinline earlier this month acquiring a 49% stake in freight forwarder PT Baruna Adipras (BAP) from PT Perus Pelayaran Samudra Karana Line for MYR1.35m ($425,193).
Syscorp has also started services to Samalaju Port after its interim facilities comprising two barge berths and one roll-on, roll-off ramp became operational about three months ago. The facilities are expected to handle up to 450,000 tonnes of cargo this year.
The company will have first mover advantage at the port, which is expected to be fully operational by the second quarter of 2016.
Samalaju Port is designed to serve the energy-intensive industries at the nearby Samalaju Industrial Park. “Syscorp is now bringing in mostly construction and building materials to Samalaju Port (for construction of manufacturing plants and other infrastructure projects),” Ling was quoted as saying. In addition Syscorp parent Shin Yang group has a construction arm that has secured two major building packages for the port project.
As the industrial park develops Ling expects Syscorp to handle more cargo, including finished products from companies there for overseas markets.Two major plants have already started operations while a third is set to begin production in the current quarter. Another two plants are currently in construction phase.