Jaya Holdings in S$60m link with Hasko

Jaya Holdings in S$60m link with Hasko

SINGAPORE (Reuter): Shipping company Jaya Holdings Ltd said yesterday it had signed a memorandum of understanding (MOU) with Indonesia's Hasko Group for a joint-venture project that will guarantee a minimum of Singapore $60 million in freight revenues over five years.

Under the MOU, two new joint-venture companies will be set up to own and operate tugs and barges serving companies in the Hasko timber processing group, Jaya said in an announcement to the Singapore stock exchange.

The first will be an Indonesian company which will purchase nine vessels with four cranes on board, all currently owned by Hasko under Indonesian flag registration.

The second will be a Singapore company which will purchase five vessels with three cranes on board currently owned by Hasko under Singapore flag registration.

In addition Jaya will invest into an existing Hasko company with a shipyard facility in South Kalimantan, Indonesia.

When the three joint ventures are duly established, it is intended for Jaya to have a 51 percent equity stake in all three and for Hasko to hold the remaining 49 percent.

All vessels of the ventures will be contracted to service Hasko under a five-year agreement which will guarantee a minimum of S$60 million. Jaya said the cooperation would reinforce its presence in Indonesia's domestic shipping market, and allow both parties to extend Jaya's capability in shipping and yard operations to the timber trade.