Logistics

In line with our vision to become the premier commodities trading house in Asia with integrated supply chain solutions from original source of commodities, processing, logistics, and extending to the trading and delivery of commodities, Agritrade has been actively involved in building up a cost-effective, reliable, and timely logistics fleet to cope with the many logistic demands of its customers worldwide.

Agritrade’s Logistics Division now owns and operates a fleet of tugboat and barges to transport its commodities around South East Asia. As of 2009, Agritrade has 15 sets of tugboat and barges fully operational and running. By 2010, Agritrade expects to have approximately 30 sets of tug and barges. In addition to its fleet of tug and barges, Agritrade also owns two dry bulk carriers, a 35,000 MT DWT, MV Komodo and a 25,000 MT DWT, MV Suryatama, to assist in the larger logistic operations.

 

Ship Building

All vessels are built from reputable shipyards commissioned by Agritrade and supervised throughout the entire process. This enables Agritrade to ensure that the quality of the tugboats and barges built are of optimal performance when launched. Agritrade also sees a huge potential in the ship building business and is working very closely with shipyards in China, Indonesia and Malaysia to build and maintain its own vessels as well as for other customers. We have a team of maritime professionals overseeing the entire ship building operations.

 

Ship Trading and Supply

Agritrade’s primary focus logistically is on the tugboats and barges mainly because it offers stability and is profitable even in volatile market conditions and economic downturns. Most of Agritrade’s business focuses on the South East Asia region where tugboats and barges are of great importance. There is a huge demand in the region, especially in Indonesia where there are many rivers and fewer built up roads and railways. In most parts of South East Asia, tugboats and barges have proven to be reliable and efficient and remain the primary means of transportation for huge and bulk quantity of goods.

Agritrade is concurrently building many tugs and barges for its own operations. A total of at least 50 tugs and barges are needed to support Agritrade’s entire group operations. However, Agritrade also sees this as an opportunity to supply vessels to others if needed. Agritrade currently supplies tugboats and barges to many customers around the region and earns good returns from this act.

 

Shipping and Chartering

In addition to supporting its own trading operations, Agritrade also provides logistics services to other companies, and is involved in the transport of sand, coal, pipes, and many other building materials. Besides using the tugs and barges for Agritrade’s own coal operations, a significant number of the company’s tugboats and barges are actively involved in the Singapore Government’s Land Reclamation Projects undertaken by Jurong Town Corporation (JTC). Currently, our tugs and barges carry over 150,000 MT of sand to Singapore monthly from South East Asia.

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