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Coastal Contracts Bhd, a local shipyard
specializing in building offshore support
vessels for the oil and gas sector will commence
full operations at its new facility at the Sg.
Seguntor in Sabah by early next year.
“We have started offshore shipbuilding works
with the construction of two offshore ships now
underway at our new yard for one of our clients
listed in the Bursa Malaysia,” said the
Executive Chairman of Coastals Contracts Bhd, Ng
Chin Heng.
“The 52-acre shipbuilding site is capable of
accommodating up to eight vessels at any one
time when the yard is fully equipped by end of
this year,” he said.
Ng said an estimated capital expenditure of RM30
million was needed to equip the new yard to
expand into offshore structures fabrication and
other related mechanical, engineering and steel
works, with prospective tie-up with credible
strategic partners who offer synergistic
propositions to the venture.
“We see bright prospects in our shipbuilding and
repairing business, driven by growing demand
amidst a favorable global macroeconomic
environment,” he said.
The company’s total order book has reached a
record-high of approximately RM787 million,
which is expected to last through 2010.
“We are quite strong in the building of the
offshore support vessels (OSV). Almost 85 per
cent or RM669 million of our order books is for
vessels to be deployed the offshore sector,” he
said.
Demand is expected to pick-up due to the global
shortage of OSVs, especially for new vessels
which are installed with leading-edge equipment
and higher horse power as the offshore industry
moves to harsher environments at greater depths”
stressed Ng.
“We rank ourselves as one of the emerging
premier vessel fabricators in Malaysia
(especially in the OSV segment), and we have
managed to carve out a name for ourselves and
become more prominent over the years,” said Ng.
Ng said the company is optimistic of securing
more contracts to add to its vessel order-book
especially in the offshore support vessel
category.
He said Coastal’s competitiveness rested with
the effective management of proactive
shipbuilding and marine engines/equipment
procurement programs.
He noted that under prevailing market
conditions, it is no longer operationally
optimal for shipbuilders to first get a contract
then only commence building, because they may
not be able to get matching delivery for the
required engines and equipment.
Thus, detailed strategic planning is necessary
to maintain a rolling production, shorten
time-to-delivery, smoothen out business earnings
volatility and most importantly keep the
purchase orders flowing in. |
