The Board of Directors of Samudera Shipping Line Ltd ("Samudera" or the "Company") is pleased to announce that the Company has strengthened its presence in Dubai, UAE, with the establishment of a subsidiary, SILKARGO L.L.C ("Silkargo").
Silkargo provides logistics services such as inbound logistics, outbound logistics and third party logistics including supply chain management, to its valued customers. In order to provide professional services in a safe and secured manner, Silkargo has leased adequate state-of-the-art warehousing space in Jebel Ali Free Trade Zone Area. Through its network in the Middle East, Silkargo is able to meet logistic needs of multinational and regional companies who use UAE as a key regional hub for distribution through out the Middle East.
The establishment of Silkargo is in line with the Company's strategy to "GO REGIONAL" (i.e. to expand geographically) and to "GO LOGISTICS" (i.e. to develop logistics business).
The Company believes that Dubai is uniquely located as a gateway for cargo flow to and from the Emirates, the Gulf region as well as CIS states. In addition, Dubai is also used as a transshipment center for various modes viz. sea-sea, sea-air, air-air. This presents an opportunity for the Company to offer suitable services in various areas within the cargo transportation industry.
Earlier in November 2001, the Company established Samudera Emirates Shipping L.L.C, in order to provide agency and support functions to its feeder service connecting spoke ports in the Upper Gulf to Dubai, and regional container shipping services, linking the Middle East with the Indian sub-continent and the South East Asia.
Silkargo is a joint venture company between ANB Logistics Pte Ltd, Samudera Indonesia Singapore Pte Ltd, both subsidiaries of Samudera, and Mr. Mohammad Noor Abdulaziz Al Khaja. By contractual arrangement the Group has management control over this entity. The authorized capital of Silkargo is 300,000 Dirhams, which was fully issued and paid up.
The investment is not expected to have a material effect on the earning of the Samudera Group for the current financial year. None of the directors or controlling shareholders of the Company has any direct or indirect interest in the subject matter of this announcement.