Dry bulk shipowner Malaysian Bulk Carriers Berhad (MBC Group) has entered into a long-term affreightment contract (COA) with Malaysia-based TNB Fuel Services Sdn Bhd, a wholly-owned subsidiary of Tenaga Nasional Berhad.
Under the 15-year contract, which is scheduled to commence in September 2016 and last until the end of August 2031, approximately 1.50 million metric tonnes of steam coal will be transported to Malaysia per year.
The contract, valued at MYR 563 million (USD 143.8 million), was signed on a consecutive voyage charter basis and the MBC Group plans to employ its owned Panamax vessels to perform the work.
The company expects that the contract will contribute positively towards the earnings and net assets for the duration of the contract.