Marco Polo Marine is looking to grab a bigger slice of Asia’s ship repair market with an expansion of its main drydock at its yard in Indonesia.
The Singapore-listed company plans to extend the dry dock from 150 metres to 240 metres, which will increase the group’s capacity for ship repairs by up to 20%.
Construction work on the dock extension is due to begin in July, with completion targeted for January 2022. The construction work will be financed from internal resources.
Marco Polo Marine said it hopes that the expansion will start contributing to its bottom line from the second quarter of next year.
“Ship repairs have been a growing source of recurring income for the group, with 50% to 70% of its business coming from repeat customers,” the company said.
Marco Polo Marine added that the current utilisation rate of its three dry docks stands at about 80%, and the dock will operate as per normal during the period of construction.
The company said its plans to expand the dry dock comes as demand for ship repairs remains robust after the group expanded its customer base beyond just offshore support vessels to include more commercial units such as containerships, bulkers and tankers.
Located in Batam, Marco Polo Marine’s shipyard occupies a total land area of around 34 hectares with a seafront of approximately 650 metres.
The company’s shipbuilding and repair operations recorded a 34% year-on-year rise in revenue to SGD 11.7m ($8.75m) in the first half of 2021.
“With ship repair demand continuing to increase, and our division operating near full capacity, the extension of our dry dock comes at an opportune time,” Marco Polo Marine chief executive Sean Lee said.
Among ASEAN shipyards, Marco Polo Marine says its competitive strength lies in its "quality workmanship, affordable pricing and on-time delivery".
“By extending our No 1 drydock, it will allow us to accommodate vessels with a length of up to 190 metres and it will also gives us the flexibility to dock multiple vessels simultaneously,” Lee told TradeWinds.
“However, it is important to note that, our No 3 dry dock is 220 metres long, and can accommodate vessels with a length of up to 218 metres.”
Marco Polo Marine said its ship repair work has also been boosted by a rise in demand for ballast water management systems.
All ships must install a ballast water treatment system by 2024 as mandated by the International Maritime Organization's Marine Environmental Protection Committee (MEPC).
“We are working on our third such installation and expected to work on more similar projects in the months ahead,” Lee told TradeWinds.
The company has also been diversifying its activities beyond the oil and gas industry to include the support of the construction of offshore wind-farm projects.
“The burgeoning offshore wind energy industry in Asia is at a nascent stage where structures are in the process of being installed, which presents tremendous opportunities for the group whose fleet is able to support the development of these projects,” the company said.
