Hong Kong: Hong Kong listed Agritrade Resources announced that Rimau Shipping, a wholly-owned subsidiary of the company, has signed a vessel acquisition agreement with Agritrade International Pte, a major shareholder of the company.
Under the agreement, Rimau Shipping has agreed to acquire 12 vessels including six tugboats and six barges from Agritrade International for $16m.
Agritrade Resources said it is currently operating a coal mine in Indonesia under its non-wholly owned subsidiary PT Senamas Energindo Mineral, and the production capacity of the mine increased substantially, and thus the demand of the group’s logistics needs have increased accordingly.
“To diversify the business and operating risk, the group believes that owning our own Indonesia inland waterway fleet and controlling part of our logistics capacity is the key to ensure our production efficiency. The group believes running our own fleet will enable to strike a better balance in the cost control, operation stability and enable the group to maintain the optimum efficiency through the matrix of self-operating fleet and independent logistics services providers,” the company said in a release. [13/01/14]