PDZ to enter Indonesian market

KUALA LUMPUR: PDZ Holdings Bhd has entered into a memorandum of understanding (MoU) with PT Indonesia Bulk Carrier to provide maritime logistic solutions to the Indonesian shipping market.

According to PDZ, Indonesian shipping laws for foreign investment and cabotage policy  require partnership with local Indonesian players, and the tie-up to enter Indonesia is expected to contribute positively to PDZ's profitability with its favourable tax regimes and government initiatives.

It added that the agreement is in line with its regional expansion plans to take advantage of the Indonesia seafreight market, projected to reach US$25bil (RM100bil) by 2020 with a container volume of over 50 million twenty-foot equivalent unit (TEU).

“Our focus is to expand our footprint regionally, partnering with a reputable maritime industry leader, who shares the same vision to take advantage of the growing trade in ASEAN. PDZ has been waiting for a long time to penetrate into the Indonesia shipping market,” said CEO cum Executive Director, Tan Chor How.

PDZ added that it is undertaking a cash call exercise via a rights issue with free warrants to raise up to RM43mil to support its regional business for acquisition of assets, expenses, investments and working capital.