KUALA LUMPUR (Jan 25): Dagang NeXchange Bhd (DNeX) has inked a consortium agreement with PT Infrastruktur Telekomunikasi Indonesia (TelekomInfra) to maintain submarine cables there.
DNeX signed the agreement via a consortium comprising its unit PT DNeX Telco Indonesia (PT DTI) and PT Samudera Mbiantu Sesami (PT SMS), it said in a statement today.
The group said the agreement is for the deployment, management, maintenance and repair, as well as other value added works, for the sea cable communication system maintenance support within and outside of Indonesia.
Under the deal, the consortium is established for a period of three years and may be extended over the next three years.
TelekomInfra will be appointed the consortium leader and will be responsible for logistics arrangements, securing the various project permits as well as overseeing project management, DNeX said.
Meanwhile, consortium members PT DTI and PT SMS will be tasked with ensuring the submarine cable laying vessel and all crew, tools and systems required to carry out the works are operationally ready.
Upon securing any contract, all parties will enter into a definitive partnership agreement, the group added.
"We are pleased to enter into this consortium with such reputable players in Indonesia as this can significantly strengthen our likelihood of securing more submarine cable laying projects," said Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir, DNeX's group managing director.
"Submarine cable laying and repair works are not new to the group as we had previously completed smaller-scale projects in Indonesia and the Philippines," he added.
Looking ahead, Syed Zainal said the group is optimistic about the growth prospects of the business as there are not many vessels that are certified to operate in this niche area of submarine cable laying for telecommunications.
Demand for such vessels has been on the rise due to advancement of telecommunications systems, which require powerful and effective transmission lines, he added.
Shares of DNeX closed four sen or 15.38% higher at 30 sen, for a market capitalisation of RM572.43 million.