PSC-Naval Dockyard
Encyclopedia
Penang Shipbuilding and Construction - Naval Dockyard Sdn Bhd (PCS-ND), was a division of the Penang Shipbuilding and Construction Industries Bhd (PCSI), a Malaysian Government-Linked Company (GLC), based in the Lumut, Perak
, Malaysia. The company's primary role is to maintain the Royal Malaysian Navy (RMN) fleet and the Lumut Naval Dockyard. However, a management and financial crisis in 2005 result the Malaysian Government to enforced the PSC-ND to be merged under Boustead Holding Bhd and renamed Boustead Naval Shipyard Sdn Bhd.
’s dockyard facilities which was to provided ship repairs and maintenance services. Under the corporatisation program advocated by the Malaysian Government, the dockyard was corporatised as Limbungan TLDM, a wholly owned government company. It has modern facilities to meet the total maintenance requirements of the Royal Malaysian Navy fleet, from hull repairs to major overhauls and from radar refitting to weapon systems refurbishment.
The company was taken over by the public listed Penang Shipbuilding Corporation Berhad, a company in the stable of entrepreneur Amin Shah Omar Shah, and renamed PSC - Naval Dockyard Sdn Bhd to reflect the corporate relationship with Penang Shipbuilding Corporation.
In 2005, Public Accounts Committee (PAC) unveiled serious corruption in the PCS-ND and caused solemn concern from the public. Under pressure of the public, Malaysian government enforced a reorganize result the PCS-ND to be merged into Boustead Holding Bhd, and named under Boustead Naval Shipyard Sdn Bhd
(RMN). An international invitation for bids was invited, from Germany, the United States, Australian and Britain amongst others submitting their bids. PSC-ND was set to join venture with the winner to complete the program.
The German Naval Group
(GNG) with their proposed model, based on the Blohm + Voss
MEKO
100 design, won the bid. A contract was signed on 13 October 1998 for an initial six units, with the GNG as the major sub-contractor. Member of the GNG, the Hamburg
-based Blohm + Voss
was to build the first two ships, while the PSC-ND was to complete the final fitting out and trials. The remaining ships were to be built at the PSC-Naval Dockyard from ship modules supplied by the GNG, with a gradual increase of local content.
The contract also involved technology transfer to PSC-ND from German side as well as to specified a local content of not less than 30 percent, and an offset program of not less than 30% of the contract value. The German Naval Group is also to make a counter purchase obligation amounting to 11% of the contract value. .
The class of ship has now been classified as the Kedah Class Offshore Patrol Vessel
. As of early 2008, four vessels were delivered to the navy.
(PAC) brought up the public attention after unveiled serious corruption in the PSC-ND management and particular failed to meet the due date of the first NGPV vessel. Local media revealed that the construction of the remaining vessels was also delayed due to financial difficulties in the PSC-Naval Dockyard. Reports of nonpayment to some 40 sub contractors who were owed RM180 million was met by surprise. PSC-ND also failed to remit some RM4 million in contributions to the Employees Provident Fund (EPF), the Inland Revenue Board and the National Co-operative Organisation despite having made salary deductions from its 1,500 staff. PSC-ND has also reportedly sought another advance of 1.8 billion ringgit from the government to complete the vessels.
The PAC claimed that RM120mil would be needed to salvage the first two OPV vessels, and that the Government also needed to pump in at least RM80mil to pay off local vendors, suppliers and contractors. http://shahrir-umno.blogspot.com/2005/12/pac-monitor-big-projects.html This led the NGPV program into crisis.
Under the intervention of Malaysian Government, a new management team was put in place and the project was revived. The Boustead Holding Bhd, also a GLC, took up 37% of stake and became the single largest shareholder of PSCI. As a division of PSCI, PSC-ND therefore merged into Boustead Holding Bhd and renamed under Boustead Naval Shipyard Sdn Bhd.
The two vessels were eventually delivered and accepted by the Royal Malaysian Navy in 2006, a delay of some 18 months. The two new ships, KD Kedah and KD Pahang were commissioned in June and August 2006 respectively.
appointed PSC Naval Dockyard as their partner and ambitiously brought 2 former Royal Netherlands Navy
submarine
s Tijgerhaai
and Zwaardvis
in anticipation of the Royal Malaysian Navy
’s planned purchase of submarines. The 2 submarines were to have been refurbished and used as training submarines while the new submarines are built in the Netherlands.
The submarines are owned by Rotterdamsche Droogdok Maatschappij (RDM
), while PSC Naval Dockyard was to be the prime partner for the program. Many thought the 2 vessels had been purchased by the Royal Malaysian Navy but this was not the case. Among RDM's competitors in the submarine project were Kockums
whose submarines are used by Singapore, DCN International
and another German company that offered Type 209 submarines. DCN International won the bid with the proposal to supply diesel-powered Scorpene submarines and an Agosta class submarine for training.
Perak
Perak , one of the 13 states of Malaysia, is the second largest state in the Peninsular Malaysia bordering Kedah and Yala Province of Thailand to the north, Penang to the northwest, Kelantan and Pahang to the east, Selangor the Strait of Malacca to the south and west.Perak means silver in Malay...
, Malaysia. The company's primary role is to maintain the Royal Malaysian Navy (RMN) fleet and the Lumut Naval Dockyard. However, a management and financial crisis in 2005 result the Malaysian Government to enforced the PSC-ND to be merged under Boustead Holding Bhd and renamed Boustead Naval Shipyard Sdn Bhd.
Background
PSC - Naval Dockyard was born out of the Royal Malaysian NavyRoyal Malaysian Navy
The Royal Malaysian Navy is the naval arm of Malaysian Armed Forces. All commissioned ships of the RMN have the prefix KD , which means Royal Ship.-Straits Settlement Naval Volunteer Reserve:...
’s dockyard facilities which was to provided ship repairs and maintenance services. Under the corporatisation program advocated by the Malaysian Government, the dockyard was corporatised as Limbungan TLDM, a wholly owned government company. It has modern facilities to meet the total maintenance requirements of the Royal Malaysian Navy fleet, from hull repairs to major overhauls and from radar refitting to weapon systems refurbishment.
The company was taken over by the public listed Penang Shipbuilding Corporation Berhad, a company in the stable of entrepreneur Amin Shah Omar Shah, and renamed PSC - Naval Dockyard Sdn Bhd to reflect the corporate relationship with Penang Shipbuilding Corporation.
In 2005, Public Accounts Committee (PAC) unveiled serious corruption in the PCS-ND and caused solemn concern from the public. Under pressure of the public, Malaysian government enforced a reorganize result the PCS-ND to be merged into Boustead Holding Bhd, and named under Boustead Naval Shipyard Sdn Bhd
New Generation Patrol Vessels Contract
PSC - Naval Dockyard Sdn Bhd was made the major contractor for the building and delivery of the New Generation Patrol Vessels (NGPV) for the Royal Malaysian NavyRoyal Malaysian Navy
The Royal Malaysian Navy is the naval arm of Malaysian Armed Forces. All commissioned ships of the RMN have the prefix KD , which means Royal Ship.-Straits Settlement Naval Volunteer Reserve:...
(RMN). An international invitation for bids was invited, from Germany, the United States, Australian and Britain amongst others submitting their bids. PSC-ND was set to join venture with the winner to complete the program.
The German Naval Group
German Naval Group
The German Naval Group is a consortium of German industrial companies that bidded and won a major contract to design and build the New Generation Patrol vessels for the Royal Malaysian Navy.Background...
(GNG) with their proposed model, based on the Blohm + Voss
Blohm + Voss
Blohm + Voss , is a German shipbuilding and engineering works. It is a subsidiary of ThyssenKrupp Marine Systems; there were plans to sell 80% of Blohm + Voss to Abu Dhabi Mar Group, but talks collapsed in July 2011.-History:It was founded on April 5, 1877, by Hermann Blohm and Ernst Voss as a...
MEKO
MEKO
The MEKO family of warships was developed by the German company Blohm + Voss.MEKO is a registered trademark. The portmanteau stands for "Mehrzweck-Kombination" . It is a concept in modern naval shipbuilding based on modularity of armament, electronics and other equipment, aiming at ease of...
100 design, won the bid. A contract was signed on 13 October 1998 for an initial six units, with the GNG as the major sub-contractor. Member of the GNG, the Hamburg
Hamburg
-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...
-based Blohm + Voss
Blohm + Voss
Blohm + Voss , is a German shipbuilding and engineering works. It is a subsidiary of ThyssenKrupp Marine Systems; there were plans to sell 80% of Blohm + Voss to Abu Dhabi Mar Group, but talks collapsed in July 2011.-History:It was founded on April 5, 1877, by Hermann Blohm and Ernst Voss as a...
was to build the first two ships, while the PSC-ND was to complete the final fitting out and trials. The remaining ships were to be built at the PSC-Naval Dockyard from ship modules supplied by the GNG, with a gradual increase of local content.
The contract also involved technology transfer to PSC-ND from German side as well as to specified a local content of not less than 30 percent, and an offset program of not less than 30% of the contract value. The German Naval Group is also to make a counter purchase obligation amounting to 11% of the contract value. .
The class of ship has now been classified as the Kedah Class Offshore Patrol Vessel
Kedah Class OPV
The Kedah class is a class of offshore patrol vessels of the Royal Malaysian Navy and named after the lead ship of the class, 171 KD Kedah. The Kedah class is based on the MEKO 100 design by Blohm + Voss. A total of 27 ships was planned, with only six having been ordered from Malaysian builders...
. As of early 2008, four vessels were delivered to the navy.
Financial and Delivery Problems
In 2005, the Public Accounts CommitteePublic Accounts Committee
The Public Accounts Committee is a select committee of the British House of Commons. It is responsible for overseeing government expenditures to ensure they are effective and honest...
(PAC) brought up the public attention after unveiled serious corruption in the PSC-ND management and particular failed to meet the due date of the first NGPV vessel. Local media revealed that the construction of the remaining vessels was also delayed due to financial difficulties in the PSC-Naval Dockyard. Reports of nonpayment to some 40 sub contractors who were owed RM180 million was met by surprise. PSC-ND also failed to remit some RM4 million in contributions to the Employees Provident Fund (EPF), the Inland Revenue Board and the National Co-operative Organisation despite having made salary deductions from its 1,500 staff. PSC-ND has also reportedly sought another advance of 1.8 billion ringgit from the government to complete the vessels.
The PAC claimed that RM120mil would be needed to salvage the first two OPV vessels, and that the Government also needed to pump in at least RM80mil to pay off local vendors, suppliers and contractors. http://shahrir-umno.blogspot.com/2005/12/pac-monitor-big-projects.html This led the NGPV program into crisis.
Under the intervention of Malaysian Government, a new management team was put in place and the project was revived. The Boustead Holding Bhd, also a GLC, took up 37% of stake and became the single largest shareholder of PSCI. As a division of PSCI, PSC-ND therefore merged into Boustead Holding Bhd and renamed under Boustead Naval Shipyard Sdn Bhd.
The two vessels were eventually delivered and accepted by the Royal Malaysian Navy in 2006, a delay of some 18 months. The two new ships, KD Kedah and KD Pahang were commissioned in June and August 2006 respectively.
Submarines
Rotterdamsche Droogdok MaatschappijRotterdamsche Droogdok Maatschappij
The Rotterdamsche Droogdok Maatschappij , was a shipbuilding and repair company in Rotterdam in the Netherlands from 1902 to 1996.-History:RDM was established on 23 January 1902 in the Heijplaat district, located on the banks of the river Meuse...
appointed PSC Naval Dockyard as their partner and ambitiously brought 2 former Royal Netherlands Navy
Royal Netherlands Navy
The Koninklijke Marine is the navy of the Netherlands. In the mid-17th century the Dutch Navy was the most powerful navy in the world and it played an active role in the wars of the Dutch Republic and later those of the Batavian Republic and the Kingdom of the Netherlands...
submarine
Submarine
A submarine is a watercraft capable of independent operation below the surface of the water. It differs from a submersible, which has more limited underwater capability...
s Tijgerhaai
Zwaardvis class submarine
The Zwaardvis class submarine is a conventional attack submarine that replaced the Dolfijn class in the Royal Netherlands Navy. Zwaardvis is based on the U.S. Navy Barbel class with the teardrop hull design. In September 1981 the Republic of China ordered two modified Zwaardvis class submarines,...
and Zwaardvis
Zwaardvis class submarine
The Zwaardvis class submarine is a conventional attack submarine that replaced the Dolfijn class in the Royal Netherlands Navy. Zwaardvis is based on the U.S. Navy Barbel class with the teardrop hull design. In September 1981 the Republic of China ordered two modified Zwaardvis class submarines,...
in anticipation of the Royal Malaysian Navy
Royal Malaysian Navy
The Royal Malaysian Navy is the naval arm of Malaysian Armed Forces. All commissioned ships of the RMN have the prefix KD , which means Royal Ship.-Straits Settlement Naval Volunteer Reserve:...
’s planned purchase of submarines. The 2 submarines were to have been refurbished and used as training submarines while the new submarines are built in the Netherlands.
The submarines are owned by Rotterdamsche Droogdok Maatschappij (RDM
RDM
The abbreviation RDM may refer to:* Radar Doppler Multifunction, a stopgap radar for the Mirage 2000 French fighter, also known as the Cyrano 5, an evolution of the Cyrano 4 used on the older Mirage F-1* Radarman, a former rank of the U.S...
), while PSC Naval Dockyard was to be the prime partner for the program. Many thought the 2 vessels had been purchased by the Royal Malaysian Navy but this was not the case. Among RDM's competitors in the submarine project were Kockums
Kockums
Kockums AB is a shipyard in Malmö, Sweden owned by the German shipyard Howaldtswerke-Deutsche Werft in Kiel. HDW itself is a subsidiary of the German ThyssenKrupp Marine Systems....
whose submarines are used by Singapore, DCN International
DCN
DCNS is a naval defence company based in France and is one of Europe's leading shipbuilders....
and another German company that offered Type 209 submarines. DCN International won the bid with the proposal to supply diesel-powered Scorpene submarines and an Agosta class submarine for training.