Sembawang Kimtrans Close To Securing Contract

Singapore's Sembawang Kimtrans is close to securing a $110 million five-year logistics contract, which will boost its annual turnover by more than 50 percent, managing director Peter Tan said, adding that the potential deal with Australian mining giant Broken Hill Pty Co. Ltd. (BHP) would boost Kimtrans' bottom line by an initial 10 to 15 percent because of heavy start-up investments, and the boost would be more significant further down the line.

In 1999, Kimtrans, which listed on the Singapore Exchange in February, saw net profit surge 177 percent to S$4.01 million on a turnover of S$44.66 million.

Kimtrans had been in talks with BHP for the last six months on the deal to provide logistics services to BHP's three coalmines in Indonesia, Tan said.