KUCHING: Shin Yang Group Bhd is constructing value-added vessels with innovative designs to service the oil and gas industry.
The vessels include a 42m fast crew boat designed for offshore support vessel (OSV) operations tailored for Petroleum Arrangement Contractors, said executive chairman Tan Sri Ling Chiong Ho.
Another is a shallow water diesel electric anchor handling tug and supply vessel that meets American Bureau of Shipping’s Enviro notation (environmental protection notation for vessels), along with DP2 diesel electric anchor handling tug and supply vessels compliant with both Enviro and Smart notations,” he said in the company’s 2024 annual report.
Its shipbuilding segment currently has an order book of RM155.8mil, with four new build contracts secured in the 12-month period to June 30, 2024 (FY24).
The Miri-based shipbuilder said the shipbuilding sector is showing signs of recovery, driven by increased capital expenditure from oil and gas industry players. In FY24, it completed and delivered one new build vessel to a client.
“With the gradual recovery of charter rates in the OSV segment and the current gap in new building orders for different OSVs over the past few years, recycling of ageing OSV as well, the group forsees and aims to take advantage of the steady and healthy increase in new shipbuilding offers to replenishment of OSVs and to address operating expenditure for ship repair and maintenance,” said Shin Yang Group.
For the ship repair business, the group secured 10 major repair contracts in FY24, bringing its current total order book to RM98.9mil.
In FY24, the group completed both minor and major repairs for a total of 556 vessels. Its floating docks, measuring 160m and 80m, facilitate efficient vessel repair and maintenance operations.
“To improve performance and manage the operating expenditures of our shipbuilding sector, the group is taking active initiatives, such as focusing on improving the group’s ship repair operations to meet the requirements and needs of the niche market segments,” added the company.
Its shipbuilding operations are supported by three shipyards in Miri and another one in Bintulu, with facilities having an annual capacity to construct up to 40 vessels each measuring up to 100m.
In addition, the group has an additional shipyard in Tanjung Manis, Central Sarawak, designated for future business expansion.
The group’s other core business is in shipping, with domestic and international operations covering South-East Asia, East Asia and the Far East. It operates a fleet of 195 vessels with a total gross tonnage of about 314,000 tonnes.
Ling said the group’s coastal and container shipper increased its utilisation rate by 9% in FY24 from FY23.
“This growth includes a steady rise in anchor cargo shipments and our initiatives to provide door-to-door logistics as an integrated service provider. Out container vessels transported a total of 219,756 TEUs (20-foot equivalent unit), an increase of 11.9% from 196,354 TEUs in FY23,” he added.
The group operates a fleet of 17 container vessels, including two (with capacities of 800 TEUs to 1,000 TEUs) servicing Sarawak-Singapore route and a third operating to Vietnam. In Malaysia, its container vessels service various ports between Peninsular Malaysia, Sarawak and Sabah.
The group has also converted two tug-and-barge units to transport containers on shorter routes, ensuring that it can meet demand and address any shortage in container shipping capacity.
On dry bulk transportation, the group’s vessels ship timber products, aggregates, sand, equipment and machinery covering key locations in Sarawak, Sabah, Port Klang, Brunei, Singapore, Thailand and Indonesia.
For liquid bulk, it has a five-year contract of affreightment with PETRONAS Chemical Marketing (Labuan) Ltd to transport methanol products.
In international shipping, the group operates five double-decker cargo vessels regularly operating to the Far East.
Ling said the ongoing infrastructure development in Sarawak offers numerous opportunities for the group’s shipping activities, especially in port development and connectivity.
In recognising the growing demand for integrated logistics services, it planned to expand its investment in container depots, haulage services, including trucking and warehouse facilities, to capture new business opportunities.
“Further strategic growth plans include leveraging our expertise in warehousing and third-party logistics providers to strengthen our position to meet the challenging market demand and enhance our overall service benchmark,” said Ling.
* Credit news article from:https://www.thestar.com.my/business/business-news/2024/11/11/shin-yang-group-building-value-added-vessels-for-the-og-industry