Korean logistics company LX Pantos announced Thursday the signing of a contract with Indonesian company KSA to establish a joint venture for resource logistics.
LX Pantos CEO Lee Yong-ho, KSA CEO Kartika Hadi and other executives from both companies attended the signing ceremony, held at KSA's headquarters in Jakarta, Indonesia. Through this agreement, LX Pantos is to make its debut in the Indonesian resource logistics market.
KSA is Indonesia's largest bulk carrier company specializing in resource transportation, handling approximately 80 million tons of coal, nickel and other materials annually. A bulk carrier is a cargo ship designed to transport large quantities of unpackaged bulk cargo.
The two companies will establish a joint venture focused on the resource logistics business. The new joint venture will initially transport coal from Indonesian mines as a foundation for its operations. LX Pantos will introduce three barges this year, and gradually expand additional vessels and transshipment facilities.
LX Pantos also plans to make use of Indonesia's status as the world's largest coal exporter and a top supplier of key materials for electric vehicle batteries, such as nickel and cobalt. The company aims to expand its resource logistics business and thereby broaden its customer base through the joint venture.
"The newly founded joint venture will help our full-scale entry into the Indonesian resource logistics market, notable for its abundant key raw materials and growth potential," added Lee Yong-ho, CEO of LX Pantos.
