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.