12.9 C
Hamburg
Saturday, September 18, 2021
Home Most Visited Singaporean state investment firm Temasek mum on PIL bailout

Singaporean state investment firm Temasek mum on PIL bailout

The Singapore government’s investment company Temasek Holdings is remaining tight-lipped on market talk that it may take a stake in embattled liner operator Pacific International Lines (PIL).

Privately held PIL, owned by the family of MD Teo Siong Seng, has admitted to being under financial strain amid the Covid-19 pandemic.

PIL is understood to have fallen behind on charterhire payments to its tonnage providers, which include Japanese ship owners. In recent months, PIL has taken steps to improve its balance sheet, including exiting the Transpacific trade, selling a subsidiary, Pacific Direct Line, and a number of ships. In April, PIL issued a statement to refute rumours that the company was facing bankruptcy.

Teo however, is known to be well connected with Singapore’s ruling elite, having previously served as a Nominated Member of Parliament and President of the Singapore Chinese Chamber of Commerce and Industry. Teo is the current President of the Singapore Business Federation.

His connections have led to speculation that Temasek may provide a lifeline to PIL.

A spokesperson for Temasek however, told Container News that the firm does not comment on “speculation or hypotheticals”.

Asked about state assistance by Container News, PIL declined to comment, but said, it is working to resolve its outstanding charterhire payments. As at 31 December 2018, PIL had US$1.12 billion of long-term debt, which could still be covered by US$1.69 billion of equity.

Adding, “We are extremely grateful that our Japanese lessors continue to be supportive of PIL. As has been reported, we have been in regular dialogue with them on charter payment arrangements and have been providing them with continuous updates and it is our intention to settle all charter payments in full."

PIL is continuing with its service rationalisation plan, which started in 2019 and will further optimise its fleet utilisation, in an effort to preserve its balance-sheet strength.

“The group is confident that with all these strategies in place, we will be able to weather this difficult environment,” said PIL.

Amid the Covid-19 pandemic, CMA CGM, HMM, Evergreen and Yang Ming are among the liner operators that have received financial assistance from their respective countries’ governments, an action that has been criticised by AP Moller Maersk boss Soren Skou.

Martina Li
Asia Correspondent

Latest Posts

CN Photo Project: The Picture of the Week

Container News wants to thank you all for your participation in the CN Photo Project. Among all the very beautiful photos we have received, the Container News team has...

Maersk raises annual forecast

A.P. Møller - Mærsk (APMM) has revised its full-year guidance for 2021 with an underlying EBITDA now expected in the range of US$22-23 billion...

Google steps into global supply chain to assist in disruptions

Google Cloud has announced the launch of Supply Chain Twin, a purpose-built industry solution that lets companies build a digital twin, a virtual representation...

Victoria container terminal completes automation upgrade of Navis N4 TOS

Victoria International Container Terminal (VICT), the first fully automated terminal in Australia, has completed its automation upgrade of Navis’ N4 Terminal Operating Solution (TOS). This...

Container caught fire on board Costamare’s feeder ship in Italy

The 1,078TEU Luebeck of the Greek ship owner, Costamare, has suffered a fire incident at the Catania port in Sicily, Italy on 16 September,...