Marco Polo bags $9m contract to build coal barges

Singapore-listed integrated marine logistic group Marco Polo Marine Ltd announced on Monday that its wholly-owned subsidiary, PT Marcopolo Shipyard (MPSY) has signed a S$8.9 million contracts with an Indonesia entity to build four units of barges to be leased to Alpine Marine Ltd (AML).

?MPSY to build four units of barges and procured four units of tugboats. The Indonesia entity will then lease the eight new vessels to AML. This arrangement was made in view of the recently enacted Cabotage principle in Indonesia, which only permits the shipment of various categories of goods within the Indonesian waters by Indonesian-flagged vessels (owned by Indonesian entities),? the company said in statement.

The company did not disclose what the name of Indonesia entity is.

Currently, AML leased 12 tugboats and 12 barges from the Indonesia entity. The addition of four new tugboats and four new barges will increase, AML?s total operating fleet size to 32 vessels, comprising 16 tugboats and 16 barges.

AML?s current operating fleet was operated to provide transhipment services, primarily for the transhipment of cargo managed and carried by Glencore International AG and its related corporations and affiliates.

?With the enlarged operating fleet size, AML will be well positioned to capture a bigger portion of the growing coal market in Indonesia,? it said.

AML is a wholly-owned subsidiary of MPST Marine, a Singapore incorporated company which is a 50:50 strategic joint venture between Marco Polo Marine and ST Shipping and Transport Pte Ltd (ST Shipping).

ST Shipping is a Singapore-incorporated member of the Glencore Group of companies, one of the world?s largest suppliers of a wide range of commodities and raw materials to industrial consumers. (denny)