NOL seeks to invest in ports

NOL seeks to invest in ports

SINGAPORE (Dow Jones): Neptune Orient Lines Ltd. is on the lookout to invest in ports where it is economically viable, even after its unit withdrew a bid for a stake in Indonesia's Koja port, Chief Executive Flemming Jacobs said Monday.

On Friday, NOL's logistics arm APL Ltd. said it had withdrawn a consortium-led offer to take a 48.52 percent stake in Koja terminal in Jakarta.

Hong Kong's Hutchison Port Holdings has since won the bid for US$147 million, according to a report in the South China Morning Post.

"We will invest in ports and operations where it makes good economic sense, like where we have substantial volume, or where we couldn't otherwise service our customers, like in Vietnam," Jacobs said.

He added NOL is not eying another acquisition in Indonesia. Jacobs stressed APL withdrew the bid because of economic reasons.

"We would just be another operator as the tariffs are regulated by the government," Jacobs said.

The decision to withdraw from the bid wasn't affected by the status of NOL as a government-linked company, Jacobs said. NOL is 33% owned by Temasek Holdings, the investment arm of the Singapore government.

"Not at all. I don't see that as having played a part all," Jacobs said.