Local shipping firms buy Malaysian tankers

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)