PDZ sets growth trajectory with turnaround, diversification
Malaysian marine, container and logistics company PDZ Holdings showed a turnaround in profitability in the fourth quarter of the financial year ended June 30 despite the persistent overcapacity and soft freight charges causing setbacks in the domestic shipping industry. "We attribute the turnaround to our asset optimisation strategy," says Amin Lana, group managing director.
Lana, who took the helm in early January, has spearheaded the company's rebound, which is anchored in cost-cutting measures, strategic alliances and aggressive marketing to improve productivity and efficiency. "Along with shortened transit times and expanded coverage, we deliver quality services and competitive market rates to solidify our position as the carrier of choice in the region," Lana says.
Using a fleet of three fully-owned and eight joint-service vessels, PDZ Holdings provides marine transport for containerised cargo covering East and West Malaysia, Brunei, Singapore and Myanmar.
As an investment holding company, PDZ Holdings operates through its wholly-owned subsidiary PDZ Lines. PDZ Lines also serves as a feeder to mainline operators, including CMA CGM, OOCL and China Shipping, and as shipping agent for some major liners.
As part of its objective to strengthen profitability, PDZ Holdings is moving ahead with its planned diversification into the LPG business after gaining shareholders' approval in June. In cooperation with compatriot Ken Makmur, PDZ Holdings will produce LPG and hydrocarbon condensate utilising natural gas from the Rakushechnoye oil and gas field in Kazakhstan. The LPG plant is expected to be brought on stream by October 2018. The company will fund this business venture through the sale of new shares and a rights issue with warrants on Bursa Malaysia.
"In addition to our move into LPG, we're seeking joint ventures to become a provider of offshore supply vessels and marine-related services to the oil and gas industry," Lana says. "These diversification efforts are aimed at creating value for our shareholders."