Marco Polo unit wins charters worth S$4.4 million a year from Glencore
TUG-AND-BARGE charterer and vessel builder Marco Polo Marine Ltd recently secured time charters for three pairs of tugboats and barges worth a total of US$3.2 million (S$4.4 million) a year from Glencore International AG.
Glencore is one of the world’s largest commodities suppliers.
Under the time charter agreements, Glencore will rent from MPST Marine (Marco Polo’s 50:50 JV with Glencore) 3 pairs of tugs and barges fully operational with crew.
The 3 time charters are expected to commence during 4Q08 and 1Q09 of Marco Polo’s financial year, which ends in September.
MPST Marine is increasing its fleet size to 12 pairs of tugs and barges, up from 8 pairs currently.
On 20 June 2008, it contracted Marco Polo’s wholly owned subsidiary, Bina Marine, to build four new barges for a total of S$15.2 million.
Another four tugboats will be procured from a third party for S$10.6 million.
Marco Polo currently has a fleet of 15 tugboats and 16 barges.
The group generated sales of S$16.5 million for the first 6 months of its financial year ending Sep 2008.
Ship chartering contributed about 55% to top line while shipbuilding contributed the remaining 45%.
