Eastern Navigation

LIKE its fleet of 40 transportation vessels, Eastern Navigation has always committed itself to moving forward. Starting out as a lighterage company in the 1950s, one of the two founding partners, Mr Tan Keng Hong, identified the potential in the industry and soon bought over his partner's share of the company.

He promptly diversified the business, purchasing tugs and barges to transport logs and gravel between Singapore, Malaysia and Indonesia. "Over the years the company capitalised on the high growth in the marine sector, especially that associated with the oil and gas industry," says his 59-year-old son, Mr Tan Ser Giam, Eastern Navigation's managing director and chairman.

Encompassing various subsidiaries with interests in chartering supply vessels, anchor handling tugs and offshore barges for the oil and gas industry, the 300-strong company, headquartered here, has since flourished to become a familiar name in Singapore waters.

Mr Tan elaborates: "We transport offshore construction materials for the construction of platforms, pipelines and floating vessels. Our supply vessels carry fuel, water, cement and victualling for the platforms, and our anchor handling tugs tow and lay out the anchors for the construction barges.

Also under the Eastern Navigation umbrella are two shipyards, namely Pandan Shipyard here and Pandan Bahari Shipyard in Batam, which are used to maintain the company's fleet, as well as repair and build tugs, barges and small craft.

Mr Tan observes that Eastern Navigation's success is the result of hard work, determination and foresight.

He says: "The success of the company lies in its ability to keep abreast of innovations in the marine industry and the willingness of the management to make calculated, risky investments.It has built a strong foundation and infrastructure for its business and has been able to keep costs low.

"As with other shipping companies, we face political problems, bureaucracy, corruption and piracy on the high seas. We accept that these are problems that we have to solve every day, but these problems are not insurmountable."

On the Enterprise 50 rankings, in which Eastern Navigation was ranked No 14 in 2004, Mr Tan says: "An E50 award gives recognition to our company for the effort we have put in. It is a morale booster for the staff and motivation for all employees."

Mr Tan has his sights set on yet more growth and development for the company. As part of the company's fleet renewal process, six more vessels are under construction in China. Profits this year, he adds, are estimated to be around $40 million.

He says: "We intend to build the company into a multinational company, with offices in the more recognisable ports."

The top management at Eastern Navigation feels that staying as a privately-held company is an essential ingredient for realising its potential.

"Our expansion plans are to build more sophisticated vessels to compete in the highly competitive market," explains Mr Tan. "As a private company, we will have more flexibility to operate, make decisions and cut costs."

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