Jakarta: Golden Agri-Resources Ltd (GAR), the world’s second largest palm oil plantation company and Louis Dreyfus Armateurs Group (LDA) have announced today GAR's intention to collaborate with LDA in Indonesian-based shipping and logistics business through a 50-50 equity participation in Orchard Maritime Services (OMS), presently a wholly owned subsidiary of LDA.
OMS presently employs a fleet of modern vessels capable of transporting various agricultural and mineral commodities. Together with its subsidiaries, OMS will provide maritime and logistics services in the domestic transportation of GAR's cargoes.
Jesslyne Widjaja, director, corporate strategy and business development of GAR welcomed the collaboration with LDA. “This is part of GAR’s strategic initiative to enhance the vertical integration of our operations. Through our partnership with LDA, GAR can further optimise our supply chain, ensure best practices of international standard and achieve cost efficiencies in the domestic transportation of our products”, she said.
Edouard Louis-Dreyfus, ceo of LDA, added: “Our group has strong links with Indonesia where it has been established for over twenty-five years. This partnership is one more step in our strategy to reinforce our position in a country which offers many business and industrial opportunities. We are proud to create today this company with a major Indonesian conglomerate and a worldwide leader in agricultural commodities”.
GAR has in recent years formed strong joint venture ties with another European shipowner, Stena Bulk.