Published on 13/07/2022 at 02:52 GMT+7 Reading time
Energy shipping company PT Mitrabahtera Segara Sejati Tbk (MBSS) purchased new vessels using bank loans worth IDR570 billion in order to fulfill demand on nickel cargo transportation.
The company signed an amendment to the banking facility agreement with PT Bank Central Asia Tbk (BCA) on July 5, 2022, on the investment credit facility worth IDR500 billion for five years. The company and the bank also extended local credit facility of IDR70 billion until January 21, 2023.
"With the signing, the company will have a positive impact by adding banking facilities with competitive interest for working capital and shipbuilding purposes," MBSS Corporate Secretary, Emy Oktavia, said in an information disclosure on the Indonesia Stock Exchange (IDX) on July 7, 2022.
MBSS seeks toward diversification to nickel cargo as a substitute for coal cargo transportation as Indonesia has been pursuing zero net emissions to reduce coal dependence.
Company Director Ferdinand Chavez Mapaye said that the company already had an existing market in nickel business. "We also have an increasing demand from several smelters, which keep on increasing their production. As our capacity is full already, our strategy is also to increase capacity," he said.
"We seek to develop diversification as an effort to maintain the company's business continuity and shareholder value," director Susan Faustine Director added.
In early March 2022, MBSS had 54 sets of barge fleet and 6 floating cranes. To meet the increasing demand, the company added more vessels. At the end of March 2022, MBSS had 64 tugboats, 54 barges, and 4 floating crane units, 2 loading facilities, and 1 supporting vessel.
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