(July 12): Two listed groups linked to Malaysia's richest tycoon Robert Kuok are joining forces to penetrate Taiwan’s budding offshore wind sector.
On Thursday, PACC Offshore Services Holdings (POSH) and Kerry TJ Logistics formalised a joint venture for Taiwan's offshore wind market. Mr Kuok is a controlling shareholder of POSH, a Singapore-listed offshore support vessel owner-operator. The Malaysian tycoon also holds equity interest through Hong Kong-listed Kerry Logistics Network in Taiwan-based Kerry TJ.
Leveraging the capabilities and assets of both companies, the POSH-Kerry TJ joint venture will provide a comprehensive portfolio including the end-to-end transportation of wind turbines and components as well as diversified marine solutions during the installation, operations and maintenance of offshore wind farms in Taiwan.
The joint-venture partners have also signed a memorandum of understanding (MOU) with Rolls-Royce to explore suitable designs for walk-to-work and Services Operations Vessels (SOVs) specific to offshore wind operations. Another MOU was signed with the partnership between Macquarie Capital and Swancor, which has won development rights in the first auction round for Taiwan offshore wind projects.
POSH’s deputy CEO Lee Keng Lin described Taiwan as “one of the fastest growing offshore wind markets in Asia”.
He added that POSH, as an international contracting group, viewed Taiwan as “an open market that welcomes contributions from foreign players with good track records in the offshore marine services sector”. By Mr Lee's estimate, about one third or 40 vessels on POSH’s current fleet are suited for deployment in offshore wind projects.
Kerry TJ’s chairman, Richard Shen told BT the outfit has had over 60 years of experience providing logistical solutions out of Taiwan. Mr Shen said that the JV can tap Kerry TJ’s extensive experience and resources to provide among others, sea and air freight services for importing and transporting large wind turbines and other structures.
The two groups unveiled their JV just weeks after Taiwan awarded the rights to develop its first commercial-scale offshore wind projects. All in, the projects to be executed over two phases could deliver over five gigawatts of wind power to Taiwan’s shores.
The local government there has set aside some US$30 billion of investment through to 2025 to develop Taiwan’s vast wind power potential.
The joint venture is supported by Enterprise Singapore, the agency championing enterprise development. Said Ho Chi Bao, director for Precision Engineering, Marine & Offshore and Engineering Services, Enterprise Singapore: “Enterprise Singapore has been working closely with POSH on its entry into Taiwan through sharing insight into the market landscape and facilitating connections to key business partners. We will continue to facilitate such partnerships to enable Singapore players to offer their solutions and expand into the renewables space.”