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Humpuss Eyes Dredging Business to Tap Into Govt’s Seaport Projects

Posted on February 25, 2016

Humpuss Intermoda Transportasi, a shipping services company, plans to expand to dredging this year, looking for works from government port building projects across the archipelago to compensate for a decline in the company’s commodity transport business.

The company has set aside $20 million to $100 million in investment to acquire 40 new ships for dredging, Humpuss president director Theo Lekatompessy said on Tuesday (23/02).

Humpuss is assessing a possible cooperation with an unnamed Dutch or Belgium company for the business.

President Joko Widodo is spending trillions of rupiah to build and expand new ports as part of his infrastructure push, the so called “sea toll,” in order to bring down the country’s logistic costs.

Humpuss’s plan is intended to boost the company’s capital expenditure this year to $254 million, from the initial $154 million allocated for buying tankers and LNG transports ships.

The company will fund up to a quarter of the investment with its internal cash, with the remainder coming from bank loan, Theo said.

Humpuss is also in negotiation to buy between 51 percent and 75 percent of a local gas distributor company. The distributor’s assets is worth $528 million, triple that of Humpuss.

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