POSH, Kerry TJ in tie-up to enter Taiwan's offshore wind market

The two listed groups are linked to Malaysia's richest tycoon Robert Kuok.
The two listed groups are linked to Malaysia's richest tycoon Robert Kuok.

Joint venture will leverage capabilities of both firms to provide comprehensive portfolio

Two listed groups linked to Malaysia's richest tycoon Robert Kuok are joining forces to penetrate Taiwan's budding offshore wind sector.

PACC Offshore Services Holdings (POSH) and Kerry TJ Logistics yesterday 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. He 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, operation 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 specific to offshore wind operations.

Another MOU has been signed with the partnership between Macquarie Capital and Swancor, which 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". 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", he said.

By Mr Lee's estimate, about one-third - 40 - of the vessels in POSH's current fleet are suited for deployment in offshore wind projects.

Kerry TJ's chairman Richard Shen said the outfit has had over 60 years of experience providing logistical solutions out of Taiwan. He said the joint venture 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 tie-up just weeks after Taiwan awarded the rights to develop its first commercial-scale offshore wind projects. All in, the projects could deliver over five gigawatts of wind power to Taiwan's shores.

The Taiwan government has set aside some US$30 billion (S$41 billion) of investment through to 2025 to develop Taiwan's vast wind power potential.

The joint venture is supported by Enterprise Singapore.

Said its director for precision engineering, marine & offshore and engineering services Ho Chi Bao: "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."

A version of this article appeared in the print edition of The Straits Times on July 13, 2018, with the headline 'POSH, Kerry TJ in tie-up to enter Taiwan's offshore wind market'. Print Edition | Subscribe