Wee (right) and Ling pose for a photo at Wisma Hubline.
KUCHING: While keeping its eyes on dry bulk shipping, Hubline Bhd (Hubline) is pursuing its dream to be an all-round logistics operator in the state by expanding into aerospace and hopefully land transport in the near future.
The Borneo Post recently sat down with managing director and chief executive officer Dennis Ling and vice chairman Dato Richard Wee to talk about Hubline’s current operations and other areas of transportation they will be looking to undertake.
According to Ling, Hubline’s dry bulk division has been profitable since day one which is why the group focuses on this segment.
Currently, Hubine operates a fleet of 23 tugboats and barges, all of which are approximately at 10,000 tonnes, plying in the Asean region.
“The dry bulk division has been on the expansion mode. In 2016, we increased two sets, to bring the number to 23.
“We have another two which are in the shipyard, in the process of construction. One already came out in July, and another will be coming out either in October or November this year,” Ling said.
“Going forward, we see that there will be two sets (added) each year. We will also be replacing some of the older ones. The (fleet) size will be increased to 25 by the end of this year.
“Operations are all within the Asean region. We are operating in the smaller ports, where the waters are very shallow and big vessels cannot access,” he enthused.
“This is why we still have business (from dry bulk) because those big vessels can’t get in to (shallow areas). Things we carry are commodities like coal, gypsum, aggregates, scrap metal, palm kernel shells (PKS) and woodchips … these are the types of cargo we carry.”
With regards to its expansion into aerospace, Wee said this was part and parcel of its focus on Sarawak-centred activities such as the O&G sector in Sarawak and Sabah waters.
“The idea is to try to also be in that position so that we would be able to participate in the O&G industry where we (provide) the helicopter to take them to the platforms,” he said in regards to Hubline’s acquisition of a 51 per cent stake in Layang Layang Aerospace Sdn Bhd, for a total purchase consideration of RM14.198 million
“Apart from that, in the company that we have acquired (Layang Layang Aerospace), currently they are also providing medical services like flying doctors into rural areas for Sarawak and Sabah.
“They are also involved in aerial survey for the timber industry, as well as Petronas pipeline. Over and above that, on a charter basis, they do have some tourism in Sabah for those who want to have an aerial view, for example, but those are chartered services.”
Hubline’s dry bulk division has been profitable since day one which is why the group focuses on this segment.
Looking ahead, Wee highlighted that they are looking at transforming Hubline into an all-round logistics company, as they target to provide air, sea and land transportation services.
“Going forward, we are looking at transforming Hubline into a total logistics company. That’s why, apart from the bulk side, we acquired the aviation company, it is also doing that kind of services they do in the way of transportation,” he said.
“We are looking at air, sea and land eventually, all the total logistics that we can actually try to turn this company into.”
On land transportation, if the opportunity is present and prices are right, Hubline is all for venturing into this segment as well.
“We would also be interested to look into the land transport side also, if there is opportunity and if the price is correct.”