Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Mon, 14 Dec 1992 08:08:57 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      SG/MM/ID: Eka Jaya feeder service to Burma

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To: Indonesian Students Mailing List <indonesians@janus.berkeley.EDU>
                           Business Times (Singapore)

                                December  8, 1992



BYLINE: By Dexter Lee
    SINGAPORE - Eka Jaya Agencies (S) Pte Ltd, Indonesian carrier  Djakarta
Lloyd's shipping agent in Singapore, has diversified into the liner business -
capping a two-year strategic expansion initiative into shipping-related
activities.

    Last month, Eka Jaya formed a joint venture with two shipowners, Kuwana
Kauin of Japan and Pacific Ocean Lines of Singapore, to provide a direct feeder
service between Singapore and Yangon in Myanmar.

    The Singapore-based venture, called Myanmar Ocean Lines Pte Ltd, is equally
owned by the three partners. The shipowners supply a vessel each for the new
feeder service while Eka Jaya handles the day-to-day operations. Myanmar Ocean
has a paid-up capital of S$ 200,000.

    The new feeder service took off on Sunday when the 5,000 deadweight tonne
Green Ray, which is owned by Kuwana Kauin, makes the maiden voyage from
Singapore. Pacific Ocean's vessel, the Pacific Samudera, will start servicing
the route on Dec 20.

    Eka Jaya managing director Edward Yeo told BT that the company has secured
about 1,000 tonnes of cargo for the Green Ray on the northbound voyage or about
one-third the vessel's cargo capacity. The vessel will, however, be fully laden
on its return journey.

    "There has been a lot of cargo held back in Singapore since the (Myanmar)
government imposed a 20 per cent import tax," said Mr Yeo, who holds a 20 per
cent stake in Eka Jaya.

    "The tax has since been halved but exporters in Singapore and importers in
Yangon are hoping for a further reduction. Better still if they revert to the
previous situation when there was no tax."

    Eka Jaya's venture into the liner shipping business is due largely to Kong
Wen Kay, who joined the company about three months ago after quitting American
President Lines as its regional business development manager and general manager
(sales).

    Mr Kong, who is now Eka Jaya's deputy managing director, told BT that plans
are already afoot for the company to offer Singapore shippers weekly
containerised feeder services - one to Yangon and another to Ho Chi Minh City -
in the first quarter of next month.

    Eka Jaya is now in the market for two containerships, each with capacity for
between 250 and 300 20-ft boxes. Mr Kong said the company will buy the vessel if
"the price is right". Otherwise, it will charter the vessels.

    Once the liner services are established, Eka Jaya will turn its attention to
forming trucking joint ventures in Yangon and Ho Chi Minh City. This will be
part of the company's next expansion plan - to become a regional shipping-based
group.

    Eka Jaya, which is majority-owned by Fook Huat Tong Kee Pte Ltd, generated a
turnover of S$ 890,790 for the year ended March 31, 1992 to make after-tax
profits of S$ 44,050.

    Besides being a shipping agent, the company also deals in freight
forwarding, shipchartering and broking, and shipmanagement through various
subsidiaries.

    Fook Huat Tong Kee is the largest international fruit trader in Singapore.
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