MISC Berhad announced last week that it is to merge its chemical fleet with the clean petroleum products (CPP) fleet operated by its wholly owned subsidiary - AET.
Under new agreement, AET will take over 13 chemical tankers and one LPG carrier currently owned/operated by MISC, combining them with its own fleet of eight CPPs to create a new, single entity.
Announcing the move, MISC President/Group CEO, Yee Yang Chien said: “There are significant synergies to be gained from merging the two fleets and creating a consolidated products business. Our chemical and CPP fleets have many customers in common and this merger enables us to offer them added value through additional capacity and flexibility.
“The integration will also allow us to continue to expand our customer base and develop a range of long-term partnerships in the sector. With growth forecast in the petrochemical industry, particularly in the US and Arabian Gulf, along with the current low oil price environment, we are confident that we will see a strengthening of exports and a higher demand for product tankers in the future,”he added.
MISC’s seven ‘Bunga A’ class vessels (38,000 dwt) which are owned by the company along with six ‘Bunga L’ class (19,900 dwt) and one LPG vessel (20,613 dwt), which are all currently operated on long-term bareboat charters, will be transferred to AET.
No changes will be made to the flag or classification society and MISC will continue to provide technical management for the chemical tankers and LPG vessel, it said.
Capt Rajalingam Subramaniam, President & CEO of AET welcomed the new arrangements:“The CPP and chemical businesses share similar market drivers and are both poised for sustainable growth in emerging markets. It makes absolute sense to operate these ships as a combined fleet. An integrated fleet allows us to optimise and triangulate the three core chemical markets – organic, vegetable and special – and provide greater options and flexibility to our customers.
“We believe we can achieve much higher vessel utilisation with a larger fleet by having access to a greater cargo pool, as well as having the ability to secure opportunistic fixtures. For our customers, I am confident of being able to deliver an enhanced service which maintains the high levels of quality and customer service they have come to expect from AET,”he concluded.