Indian shipping firm plans Indonesia joint venture to win back orders

Varun Shipping Co. Ltd, India?s biggest liquefied petroleum gas (LPG) carrier, will form a joint venture in Indonesia to be able to operate three of its ships in there, Indian media reported on Thursday.

The Indonesian government had in July changed rules, reserving LPG transportation on domestic routes for local shipping firms.

Varun Shipping moved almost half of Indonesia?s LPG cargo till July.

?We will convert three of our Indian-registered gas carriers to Indonesian-registered ships,? vice-chairman and managing director Yudhishthir D. Khatau said at a shipping summit in Mumbai on Wednesday.

?These three ships will be operated by a company registered in Indonesia in which Varun will hold 49% stake and the balance by a local Indonesian company,? he said. The company already has a subsidiary in Singapore.

Khatau said Varun Shipping has identified an Indonesian firm to become its joint venture partner, but declined to name the firm. (*)