KUCHING: Shipbuilder TAS Offshore Bhd
which has a robust order book of RM278mil, is eyeing for more contracts on tugboats’ construction from especially Indonesian and Singaporean customers.
In the 12-month period to May 31,2025 (FY25), TAS secured 19 new shipbuilding contracts valued at RM232.1mil from Indonesia.
These contracts are scheduled to be delivered between 2026 and 2027, according to chairman Datuk Mohammed Sepuan Anu.
In FY25, TAS completed and delivered 20 tugboats worth RM144.3mil to shipowners in Indonesia and Singapore.
He said the group’s outstanding order book of RM278mil provides strong revenue visibility, and reinforces confidence in its future performance.
In FY25, Indonesia remained TAS largest market, contributing about 95% of group revenue of RM145.2mil.
“Indonesia’s reliance on tugboats and barges for inter-island transport, coupled with abundant natural resources, underpins steady demand for our vessels, “ he noted.
According to Export Market Research, the Indonesian barge fleet market is projected to expand at a compound annual growth rate (CAGR) of 4.70% between 2025 and 2034.
“Strong fundamentals in the mining sector, particularly coal and nickel, together with rising energy demand, population growth and continued government investment in maritime infrastructure are expected to drive long-term industry growth,” Mohammed said in the company’s 2025 annual report.
Indonesia’s mining sector, propelled by vast reserves of coal and nickel, continues to underpin tugboat demand. Its domestic coal consumption for 2025 stands at 239.7 million tonnes, which is about 32.2% higher than 2024, while nickle’s role in electric-vehicle battery production enhances long-term volume potential.
“The barge transportation market is expected to see sustained growth as global trade volumes rise, demand for bulk commodities increases,and more industries seek greener logistics solutions.
“Barges are an efficient and environmentally friendly mode of transport, capable of moving large volumes of cargo in fewer trips, thereby reducing both fuel consumption and carbon emissions,” according to TAS.
According to Business Research Insights, the global tugboat market is estimated at about US$7.17bil in 2025, and is projected to reach US$7.47bil in 2026. It is forecasted to expand at a CAGR of about 4.15%, reaching about US$10.34bil by 2034.
By market segment, harbour tugboats account for 58%, deep sea tugboats 24% , river tugboats 13% and others 5%.
Given its specialisation in tugboat construction and strong client base in Indonesia, TAS said it is ready to capture market growth in the tugboat sector.
The Sarawak-based shipbuilder said although global decarbonisation initiatives and renewed interest in nuclear power present long-term headwinds for fossil-fuel-related maritime support, Indonesia’s archipelagic geography and resilient bulk-freight flows continue to support demand.
The transition is expected to be gradual, sustaining demand for tugboats and barges in the short to medium term.
Looking ahead, Mohammed said TAS is well-positioned to benefit from resilient demand in Indonesia’s mining and transportation sectors.
“While the global environment remains uncertain, shaped by geopolitical tensions,trade challenges, and the energy transition, the group’s order book, industry recognition and trusted client relationship provide a solid foundation.
“We will continue strengthening operational capabilities, capturing opportunities and delivering long-term value for shareholders,” he added.
