PORTEK INTERNATIONAL LIMITED

PORTEK INTERNATIONAL LIMITED

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Company Overview
Portek International Limited is an investment holding company that focuses on selling equipment, components and spares; equipment leasing; crane mobilization, modernization and modification; technical services; and port information technology solutions. The company, which was established in 1988, has its registered head office located in Singapore City.
Under the Terminal Operations and Cargo Handling segment, Portek operates small to medium-sized terminals. The company provides an entire range of solutions to gear up a port’s efficiency and productivity through software systems such as wireless radio data transmission systems, container terminal management software, position determination systems, surveillance and security systems. It also provides 3D computer simulation services to analyze and model port operations. Its port operation portfolio includes terminals in Indonesia, Algeria and Malta.
Under the Power Generation segment, Portek holds a 15% interest in PT Metaepsi Pejebe Power Generation, which owns a power purchase contract with PT Perusahaan Listrik Negara to construct, own and operate two 40 megawatts GE LM6000 gas-fired turbines in Maura Enim, Southern Sumatra. In May 2006, Portek acquired a 51% interest in La Meccanica Generale S.r.l. In November 2007, it incorporated a wholly owned subsidiary, Portek IT & Automation Pte. Ltd. Portek has emerged as a global specialist provider of solutions to the port industry.
Business Summary
The Group’s activities are multifarious: it owns and leases cranes; undertakes crane modification and modernisation; it is a system integrator of crane drives and automation; and it markets crane components and spares.
Description and history
The Portek Group started business on 20 April 1988, with the incorporation of Portek SE in Singapore. As business expanded, more companies were added. On 9 October 1996, Portek Holdings Pte Ltd was incorporated in Singapore under the Act, as a private limited company.

The Group is headquartered in Singapore and operates mainly in the Asia Pacific region. The Group’s activities are multifarious: it owns and leases cranes; undertakes crane modification and modernisation; it is a system integrator of crane drives and automation; and it markets crane components and spares.

As a natural extension of its equipment leasing and sale business, the Group has gone into joint operation arrangements in some terminals. The Group is presently in collaboration with PT. (Persero) Pelabuhan Indonesia II, one of the Indonesian port authorities to operate Banten Port in West Java, and Serbaguna Terminal in Jakarta. The Group sees a natural synergy between terminal operation and cargo handling, and equipment leasing and maintenance, and will be looking at other opportunities in terminal operation and cargo handling where appropriate.

Another opportunity which the Group plans to capitalise on is the energy sector which includes the power generation and oil and gas sectors. The Group believes that its core competencies in drive system integration, crane control and automation can be deployed in the energy sector in the form of revamping and operating power plants and implementing control and monitoring systems for oil and gas installations.

To prepare for a listing on the SGX-ST pursuant to the Invitation, the Company on 8 February 2001 undertook the Restructuring Exercise to rationalise the shareholding structure, and to consolidate the principal entities of their Group as subsidiaries under the listing vehicle. On 9 April 2001, the Company changed its name to Portek International Pte Ltd.

History

1988-1990
One of the first businesses Portek SE went into was to act as a sales and service agent for Bromma AB of Sweden in 1988 for the entire range of Bromma Spreaders. A Spreader is a critical component of a Container Crane because a high proportion of crane downtime is due to the Spreader, owing to the severe duties it is subject to. Bromma AB is a global market leader in spreader systems as acknowledged by Container Management – Issue 168 – October 2000.

They are responsible for increasing the population of Bromma Spreaders in Asia from less than 40 units in 1987, to about 1,160 units in year 2000.

At the same time, they started distributing the Cavotec range of Power Transmission Products. These include Cable Reels, Panzerbelta Cable Protection System, and other related Power Transmission Products. They had successfully marketed these products for new crane projects in Singapore and other regional ports.

Portek became the first company to undertake operating leases of Container Cranes in South East Asia when their Malaysian subsidiary, Arah Sejati Sdn Bhd (now Portek (Malaysia) Sdn Bhd) leased two RTGs to Penang Port Sdn Bhd (previously known as Penang Port Commission) in June 1989. The leasing business has since grown to a fleet of seven Container Cranes, consisting of five Quay Cranes and two RTGs as at 30 June 2001.

These early days also saw the setting up, in 1988, of Port Technology Pte Ltd, as a consultancy unit, and Railford Ltd (now known as Portek Hong Kong Ltd) in Hong Kong, as a vehicle to tap into the port equipment market in that area.

1991-1995
Container traffic continued to grow by 20% to 30% per annum in regional ports, powered by economic recovery and the strong Japanese Yen. Capacity expansion in Asian ports took place as a result. More crane components were added to their range of product offerings.

These were Ican Thruster Operated Disc Brakes and Spohn, and Burkhadt Joystick and Console. These, together with Bromma Spreaders and Cavotec products, enjoyed growth in sales throughout this period, and at the same time, allowed them inroads into ports across Asia.

The agency businesses of Cavotec products and Bromma Spreaders were later injected into equally held joint ventures with the respective principals. These joint ventures, Cavotec PL and Bromma FE, were formed in 1995 and 1997 respectively, to further expand and consolidate the agency businesses.

The development of Port of Singapore Authority (now known as PSA Corp) in this period saw the delivery of cranes from Korean manufacturers such as Samsung Heavy Industries Co Ltd and Korea Heavy Industries and Construction Co Ltd. Portek took the opportunity to fulfil a need by these companies for local technical support in terms of unloading, commissioning, and later Warranty Maintenance of such equipment.

With long term work commitments in hand, they were able to build up a team of engineers and technicians to provide technical services. They used these as opportunities to learn and build up our technical competence.

In 1995, they became active in Indonesia and started cooperating with PT Transindo Interdwipantara (Transindo) of Jakarta. They were first contracted by Transindo to refurbish an RTG in the Port of Tanjong Priok, Indonesia.

The project was successfully completed and was followed by a series of other crane refurbishment and Crane Drive System projects. Hence, they established a track record in Crane Modernisation and Crane Modification.

1996
In June 1996, they secured a sale of two Quay Cranes to Oriental Port & Allied Services Corporation of Cebu, Philippines, and one operating lease of one Quay Crane to Transindo for the Port of Panjang in Southern Sumatra. This marked the beginning of their Quay Crane sale and leasing business.

Following the successful completion of these projects, Transindo further awarded them other contracts for outright sale of used cranes, including one Quay Crane and six RTGs.

Their crane sale business continued to grow. Some of the sales were: 6 RTGs to Indonesia; 2 Quay Cranes to Malaysia; 3 RTGs to Panama; 6 RTGs to Thailand; and 2 Quay Cranes to Thailand.

The crane leasing business continued to expand and as at 30 June 2001, they have a fleet of 5 Quayside Container Cranes and 2 RTGs under operating leases. In these leases, they provide full 24 hour maintenance service, including parts and labour.

In June 1997, they incorporated Hanggu Cranetek Co Ltd, a 51% owned subsidiary, in Korea to enter into the port equipment business in the growing Korean market.

Their Crane Modernisation business also continued to expand. In 1998, they converted a Quayside Crane into a Multipurpose crane capable of handling container and bulk cargo in Banten Port Multipurpose Terminal.

Recent Crane Modernisation projects secured included: Partial refurbishment of 10 RTGs for Hong Kong; Partial refurbishment of 10 RTGs for Panama; Complete refurbishment and modernisation of 2 Quay Cranes for Panama; Crane Drive System retrofit for 4 Quay Cranes for a terminal in Hong Kong; Crane Drive System retrofit for 1 Quayside Crane in Kaohsiung; Crane refurbishment project including Crane Drive System retrofit in Sydney, Australia; and Structural Modification for 18 RTGs and remote crane management system in Yantian, China.

In 1998, they incorporated PT Portek Indonesia in Indonesia, which was later turned into a joint venture with PT (Perseso) Pelabuhan Indonesia III to under take crane maintenance and other related port business in Indonesia. PT Portek Indonesia is now a 51% owned subsidiary of the Group.

Their Terminal operation and cargo handling business started in November 2000 when they reached an agreement with Pelabuhan II for the operation of Banten Port Multipurpose Terminal.

In October 2000, they invested in Jason North Asia pursuant to an Investment Agreement to further their intention to increase their presence in North East Asian countries, including China, South Korea, Taiwan, and Hong Kong.

Through Jason North Asia, they gained entry into the business of distributing power electronics and automation products to various industries, including ports, steel, and environmental protection sectors in China.

In July 2001, they also entered into a joint venture with PT Transindo Interdwipantara to take over an EOC to operate container handling equipment at the Serbaguna Terminal in Jakarta.

Business Line
Investment holding company that focuses on selling equipment, components and spares; equipment leasing; crane mobilization, modernization and modification; technical services; and port information technology solutions
Subsidiary
BEJAIA MEDITERRANEAN TERMINAL SPA
Advisor
DELOITTE & TOUCHE
IPO date
3/28/2002
US SIC Code
5084
Company Address
PSA Vista, #02-01
20, Harbour Drive
City province or state postal code
117612, SINGAPORE
Phone: +65 6873 1114
Fax: +65 6873 2224
Country address: SINGAPORE
Website url: www.portek.com

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