KUCHING: Hubline Bhd
’s ongoing yearly tug-and-barge fleet renewal and expansion programme will continue in 2026.
This exercise is central to the company’s long-term strategy, performing well and meeting expectations, said Hubline’s management in the company’s newly released 2025 annual report.
“The introduction of a new barge each year continues to allow us to maximise gross revenue while achieving greater economies of scale, successfully justifying the initial higher capital outlay.
“The key benefits of lowering our average fleet age are immediate and multi-faceted, as the newer barges provide immediate savings through significantly reduced maintenance expenditure and steel plate upgrading costs.
“We benefit from a reduction in our overall insurance premium on sums insured, and newer vessels help to lower our carbon emission per tonne of cargo carried, aligning with our commitment to sustainability and enhancing our appeal to environmentally conscious clientele,” added the company.
For the financial year ended Sept 30, 2025 (FY25), Hubline’s capital commitment was RM11.1mil, lower than RM28.5mil in FY24.
Currently, Hubline operates a 21-set tug and barge fleet with cargo capacities between 8,000 and 12,000 tonnes, and operating throughout South-East Asia. The company’s primary barge cargoes are coal and gypsum.
Heading into FY26, Hubline said it will continue with its committed fleet renewal programme.
“This initiative not only complements our thriving business but also unequivocally reflects our commitment to reducing our rate of carbon emission and ensuring long-term operational relevance,” it added.
“However, the execution and pace of this essential programme will be prudently managed as it is necessarily subject to prevailing steel pricing volatility and the availability of reasonable pricing of new builds from shipyards.
“We are committed to judicious capital expenditure that maximise shareholder value while securing our future operational capabilities,” Hubline noted.
In FY25, the company said its shipping segment performed well, characterised by the maintenance of an almost full fleet utilsation rate during most parts of the year.
“This achievement stems from the implementation of highly effective scheduling protocols designed to maximise both forward and return cargo opportunities, which validates the indispensable nature of our service offering and the depth of our client engagement.”
Throughout the year under review, Hubline saw periods where freight rates came under pressure from industry-wide factors, paralleling volatility in bunker prices driven by global demand concerns.
Crucially, the company said it maintained consistency in its barge scheduling and full logistics capacity. “We observed a healthy relationship where rebounding freight rates offset index-based outgoings, demonstrating the robustness of our contract and pricing models,” it said.
Meanwhile, Hubline said it will pursue greater margins and alternative routes across the region, including Cambodia, the Philippines, Peninsular Malaysia and Thailand to complement its core Vietnam trade.
Besides shipping, Hubline’s other core business is in aviation services offered via 51%-owned subsidiary, Layang Layang Aerospace Sdn Bhd. Currently, Layang Layang operates a fleet of 28 fixed wing aircraft and helicopters for general aviation and flying academy services.
In FY26, Hubline said Layang Layang will intensify efforts to explore opportunities within Malaysia and the Brunei, Indonesia, Malaysia and the Philippines – East Asean Growth Area region on aviation logistics, and maintenance-repair-overhaul services for helicopters.
“Our strategic focus on multi-year fleet renewal planning is to acquire more efficient aircraft types to replace ageing fleet to improve payload capacity, enhance fuel efficiency and reduce carbon emission.”
