RichLand Enters Into Indonesia's Chemical Logistics Sector With New Contract Wins From BASF & SMI

Ramba Energy's logistics subsidiary taps growth demand in transport of bulk liquid chemicals with new 500-strong fleet of ISO tanks

PT RichLand Logistics Indonesia ("RLI"), the Indonesian subsidiary of SGX-mainboard listed Ramba Energy Limited, has clinched two new contracts to manage the domestic transportation of bulk liquids for two leading chemical companies in Indonesia. The contracts with PT BASF Indonesia ("BASF") and PT Styrindo Mono Indonesia ("SMI") mark a significant step forward in Richland's expansion plans to become a leading logistics provider for the chemical sector in South East Asia.

Mr Colin Moran, Logistics Director, Ramba Energy Limited said, "The recent wins place RichLand where we want to be -- strategically and squarely on Indonesia's logistics landscape. More notably, they mark Richland's entry into the country's specialised chemical sector where we are now managing about 45 truckloads a day or an estimated 12,000 full loads a year."

"At the heart of our latest success is RichLand's ability to tailor design reliable and cost-effective solutions to meet the unique logistics requirements of customers in the chemical industry. In this instance, we capitalized on RichLand's core competence in transport management and our recent investment in a 500-strong fleet of ISO tanks for the handling of Bulk Liquid Chemicals within the asia region."

Under the contract with SMI, RLI's annual volume is set to exceed 160,000 tons per year. RLI manages the outbound logistics and transport of bulk styrene monomer from the SMI plant in West Java to end-customers located across Java. Valued at about S$5M , the 3-year contract which commenced in November 2010 is renewable for a further 2-year term and involves the deployment of a new fleet of special-purpose trucks equipped with ISO tank containers. SMI is the country's largest producer of styrene monomer for the domestic Indonesian market place and is also a major exporter within the region.

Mr David Sutanto, SMI's Commercial Manager said, "Solid local knowledge is important particularly in fast-growing emerging markets, such as Indonesia, which have their own complexities. More than just providing assets, our logistics partner works with us to improve delivery processes and operations and to identify and recommend solutions that fit our changing needs and our customers' dynamic requirements. In fact, Richland has differentiated themselves by operating the assets rather than subcontracting their business."

For the separate contract with BASF, Richland undertakes selected transportation assignments from BASF plants in Cengkareng, Jakarta and Merak, West Java to key customers in Java and Sumatra.

Mr Colin Moran added, "Interest in domestic land transportation services for bulk liquid chemicals has been strong. We are growing capacity to support demand. Likewise, intra-regional demand for ISO tank freight services is improving on the back of Asia's economic recovery. We are confident our continued focus to build strong partnerships with leading chemical companies, underpinned by key asset investments, will drive our reputation as a trusted chemical logistics provider in the region."

SOURCE: PT Styrindo Mono Indonesia ("SMI")