Marco Polo looks to Malaysian JV with Nam Cheong to find work

Marco Polo looks to Malaysian JV with Nam Cheong to find work

The joint venture company owed by Singapore’s Marco Polo and Malaysia’s Nam Cheong, Marco Polo Offshore, has incorporated a new wholly-owned subsidiary SK Marco Polo in Malaysia.

In a filing the companies said that SK Marco Polo will mainly engage in the business of vessel chartering. Both companies have struggled through the offshore downturn and had going concern issues flagged.

In September 2016, Marco Polo drew attention to its own going concern issues and is currently in the middle of restructuring, while Nam Cheong’s auditor BDO said last week there was a material uncertainty related to going concern in their report on Nam Cheong’s 2016 financial statements.

According to VesselsValue, Nam Cheong has 56 vessels scheduled for delivery this year, far more than any other shipbuilder, and Splash understands that only a small percentage have been committed for sale.

“It’s a way of Marco Polo putting some of its excess boats into Malaysia. I don’t see it helping Nam Cheong newbuilds in China at all,” a well placed source told Splash.

Marco Polo Offshore became a joint venture between the two companies in August 2014 following the $50m sale of a 50% stake in Marco Polo Offshore to Nam Cheong. The JV immediately went on to purchase a new-build 200-man accommodation work vessel constructed by Nam Cheong.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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