Mon, 04 Jan 1999

Local shipping firms buy Malaysian tankers

By Johannes Simbolon

JOHOR BAHRU, Malaysia (JP): Shipping companies PT Bumi International Tankers and PT Layar Sentosa Shipping Corporation have bought two oil tankers from Malaysia worth between US$13 and $14 million each.

The firms received the two tankers from Malaysia Shipbuilding & Engineering Sdn Bhd at the latter's shipyard in Pasir Gudang, Johor, on Saturday.

The 6,500 dead weight ton tankers, named M.T. Jayne and M.T. Julia, will be chartered by state owned oil and gas company Pertamina for 12 years to transport the company's crude oil and oil products.

Jayne and July, respectively owned by Bumi International and Layar Sentosa, are equipped with the latest shipping technology to meet American Bureau of Shipping standards.

Bumi International Tankers director Barens Saragih said here the tankers were built with loans provided by Malaysia's Exim Bank.

Loan terms included an interest rate of 1.5 percent above the London Inter Bank Official Rate (LIBOR) per annum, with a grace period of two years, Barens said.

He said Bumi International and Layar Sentosa found the Malaysian bank's interest rate was more competitive than Indonesian banks' offers.

"Indonesian banks have thus far paid attention at the development of export oriented companies and given no attention to the development of the country's shipping companies,"

"That's why, all local shipping companies, including Bumi International and Layar Sentosa, have looked for overseas loans to build their ships," said Barens, who is also secretary-general of the Indonesian National Shipowners Association (INSA).

Malaysia gave more attention to the development of its shipbuilding industry, Barens said.

Bumi International owns and operates seven oil and fuel tankers, which were mostly built at MSE with financing provided by Malaysia's Exim Bank.

Bumi International chairman Jaka A Singgih said the operations of both tankers was expected to strengthen Pertamina's capability of distributing its oil and products. It would also help to increase the role of local shipping companies in transporting the country's commodity.

"Pertamina has given support to the development of the country's shipping companies by allowing them to transport its products," Jaka said at the tanker handover ceremony.

In attendance were Director General of Sea Transportation at the Ministry of Communications Agus Rudyanto Ruwadi, Pertamina's director of shipping, port and communications, Ilham Syarif, the chairman of Malaysia's Exim Bank, Tan Sri Dato Wira Abdul Rahman Arshad, and MSE chief executive Abdul Rahim Abdul Rahman.

Ilham said about 170 tankers were currently in operation to transport Pertamina's crude oil and oil products. Only 30 of the tankers are owned by Pertamina and the rest are chartered.

He said Pertamina initially transported all its products with its own fleet. In the early 1990s, however, it launched the long- term time charter program to provide an opportunity for national shipping companies to participate in the transportation of its products through open biddings.

Pertamina charters the tankers for eight to 12 years.

"Under its current policy, Pertamina will not increase its fleet or replace the old tankers. Instead, we shall increase the number of chartered tankers," Ilham said. (jsk)