Singapore: Marco Polo Marine Wins Shipbuilding Contract for Two Tugs and Two Barges

Singapore Exchange Mainboard-listed Marco Polo Marine Ltd, a growing integrated marine logistic group announces that the Group has secured a new ship-building contract to construct two towing tugs and two deck cargo barges for PT. Pelayaran Nasional Bina Buana Raya (“BBR”) for approximately S$4.6 million.

With reference to MPM’s announcement dated 2 August 2011, MPM through its wholly owned subsidiary, Marco Polo Shipping Co. Pte Ltd, has completed the acquisition of its 49% equity stake in BBR. Besides engaging in ship agency functions (such as clearing of customs) and ownership of tugs and barges, BBR also undertakes the provision of chartering, re-chartering and transhipment services of vessels to its customers in Indonesia.

Construction of the two towing tugs and two deck cargo barges is expected to begin in September 2011 at the Group’s shipyard in Batam. The vessels are scheduled for delivery to BBR in June 2012. Upon completion and delivery, these Indonesian flagged vessels will be deployed by BBR to ferry various commodities within Indonesia for its customers.

Mr. Sean Lee, the Group’s CEO commented, “We are pleased to be able to use our ship building facilities in Batam to support the fleet expansion at BBR so as to capitalise on the growing opportunities for the transportation of commodities in Indonesia. This contract will increase the capacity utilisation of our Batam shipyard and contribute to the profitability of the Group’s shipbuilding activities in the following financial year.”

Marco Polo Marine is an integrated marine logistic company serving the energy sector in Indonesia and the region. The Group is a substantial player in the transportation of Indonesian coal for domestic use and exports. In Thailand and Australia (and soon Indonesia), the Group’s growing fleet of offshore supply vessels support deep sea oil & gas exploration. A wholly-owned shipyard in Batam undertakes ship building and ship repair for the Group as well as third parties by providing Singapore quality at Indonesian costs. The shipyard occupies a total land area of approximately 34 hectares, with a seafront of approximately 650 metres and has two dry docks to undertake ship repair and conversion services.