Trada Maritime eyeing $49m coal transportation contract

Shipping firm PT Trada Maritime Tbk. is eyeing coal and oil transportation contracts and studying plans to buy several vessels to strengthen its armada, Investor Daily reported on Wednesday.

Trada Maritime?s director of finance Danny de Mita said in Jakarta Tuesday that the firm expected to sign a contract next month for coal transportation using dry bulk ship, that is expected to contribute around US$49 million to its annual revenue. The firm has targeted a total revenue of $115 million for next year.

He did not identify the company that will give the contract.

Danny also said that the company was studying the possibility of purchasing between two and three used dry bulk ships, handymax vessel measuring 50,000 deadweight (DWT) and Panamax measuring 80,000 DWT, at total costs of between $180 million and $220 million.

Estimated price for each ship is around $60 million and $70 million. ?To buy the ships, we will borrow $150 million from a bank," Danny said.

Danny also unveiled the firm's plan to buy several floating storage offloading (FSO) vessels at around $50 million.

The firm expected to sign contracts for the use of the FSO vessel at the end of this month, Danny said. ?The contract of each ship is expected to have six-month term,? Danny said.

Apart from that, the firm has also secured a short-term contract from state owned oil and gas company PT Pertamina to transport fuel with motor tanker ship measuring 2,000 DWT in early August 2008. After three months, the contract could be extended, Danny said.

Danny also disclosed the firm's plan to sell 45.81 percent or four billion shares to the public through an initial public offering (IPO) from Sept. 2 through Sept. 4, 2008. The IPO is aimed to raise Rp 500 billion funds, with shares priced at Rp 125 per share, she said.

Trada is expected to be listed in Indonesian bourse (IDX) at Sept. 10, 2008. (*)