COMPLETE PURCHASE OF ADDITIONAL 1 UNIT OF MV BULK CARRIER AT THE END OF 2019, PSS SETS TO ACCELERATE GROWTH IN 2020
COMPLETE PURCHASE OF ADDITIONAL 1 UNIT OF MV BULK CARRIER AT THE END OF 2019, PSS SETS TO ACCELERATE GROWTH IN 2020
Ending 2019 by completing the purchase of 1 unit of Bulk Carrier (Motor Vessel) as part of a sustainable fleet expansion program, PSSI sets to accelerate logistic opportunities not only in coal transport but also other mineral commodities.
With a capacity of 28,000 dead-weight-tons (dwt), “Dewi Gandawati” is the Company’s 6th MV, part of 4 MV vessels purchased in 2019. PSSI completed the MV acquisition at US$7.5 million, which was paid with 20% internal cash and 80% paid in shares.
A two-year time charter contract was successfully obtained for this handysize class vessel to transport iron products and coal. The time charter contract was signed in December with a domestic logistics company, the vessel handover was completed in Batam on the 3rd week. The 1st shipment plan is to transport iron products from Morowali area, South Sulawesi. Time charter revenue is one of the revenue growth targets for 2020 with above 100% increase than 2019.
The Company has begun business diversification to other energy sectors, with target composition of coal transport around 70% and 30% other minerals in 2020.
Following 4 units of MV, 1 unit of tugboat and 2 units of barge purchased in 2019, PSS now owns a total fleet of 86 units, consisted of 39 sets of Tug and Barge, 3 units of Floating Loading Facility and 6 units of MV. Asset growth has increased by 27% YoY in 11M19 to US$140.1 million.
Rising domestic logistic demand particularly for energy and mineral sector will be the Company’s main focus for 2020.