KUCHING: Harbour-Link Group Bhd
has beefed up its shipping fleet with two newly acquired container vessels.
The two container vessels, which replaced the ageing ships, have joined the service operation and are expected to boost shipping revenue going forward,according to Bintulu-based Harbour-Link.
With the new vessels, the company expects to operate a regular sailing schedule and manageable repair and maintenance cost.
Harbour-Link provides container shipping liner services within Malaysia and the Intra-Asia market. The group operates a fleet of 13 container vessels, supported by operation offices in every calling port, including Singapore, Brunei, Hong and China, besides those in Malaysia.
“Container shipping freight rates and utilisation rates have stabilised and is expected with slight recovery in the coming two quarters until year-end 2024, due to coming festival seasons (Christmas and Lunar New Year),” Harbour-Link said when releasing its full year (2024) financial results recently.
In the fourth quarter of 2024 (4Q24), the group’s shipping and marine segment posted double-digit revenue growth by about RM20.2mil (14%) to RM161.9mil from RM141.7mil in 3Q24, bolstered by increased cargo volume handled for both inbound and outbound shipments.
This helped to lift the segment’s pre-tax profit by RM2.66mil (14%) to RM22.3mil from RM19.65mil quarter-on-quarter.
In financial year 2024 (FY24), Harbour-Link saw the revenue of its shipping and marine segment shrink by about RM20.7mil (17%) to RM587.8mil (FY23: RM608.4mil) because of stiff competition with major liner operators, which had deployed additional tonnage into the region, thus causing downward pressure on freight rates.
This had adversely affected the segment’s net profit which fell to RM64.8mil from RM128.2mil in FY23.
Besides container shipping services, Harbour-Link is also actively involved in the sea transportation of timber products, mainly sawn timber and round logs, servicing within the Asean region and covering Vietnam, the Philippines and Thailand with four sets of tugboats and barges.
With the group’s shipping agencies’ business maintaining well with regular shipments and anticipated better revenue from container shipping services, Harbour-Link expects the shipping and marine segment to deliver favourable financial results in FY25.
On the prospects for the group’s integrated logistics business, Harbour-Link said it remains positive and steady as cargo movements have recovered and improved from the manufacturing, as well as the oil and gas sectors.
“We shall expect to secure more project cargoes in the coming quarters,” said the company.
