Singapore: Marco Polo Marine has entered into a S$11.9m sale and leaseback deal to allow eight vessels to allow them to operate in Indonesian waters. The company said it had sold the eight vessels to a "related party" and they would then be leased back to MP Shipping as Indonesian flagged vessels.
Sean Lee Yun Feng, chief executive of Marco Polo, noted only Indonesian companies could own Indonesian flagged vessels and the sale and leaseback arrangement would enable its vessels to operate freely in the country's waters.
Indonesia is progressively implementing a cabotage law restricting domestic shipping to Indonesian registered vessels.
Lee added that through the transaction Marco Polo would reduce its debt and improve cashflow. [20-01-20]
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