By Rasheedah Mahfuz

(EnergyAsia, July 4, Friday) — Penguin Marine Offshore Services Pte Ltd (PMOS), a wholly-owned subsidiary of Singapore’s Penguin International Limited, said it has been awarded a logistics management contract to support the development of ‘The World’ islands project in Dubai.

The contract, with the potential to generate revenues of US$200 million over five years for the company, was signed between PMOS’ Middle East joint venture, Penguin Marine Boats Services and Nakheel, the world’s largest privately-held property developer.

This is the first major ‘world contract’ to be awarded to a Singapore company and affirms Penguin’s 32-year experience in marine transportation. Penguin expects to support the project through joint ventures, strategic partnerships, vessel charters and selective acquisitions, and is currently evaluating various fund raising options as well.

The main work scope involves the operations and management of a 87,000-square metre construction logistics port at Port Rashid, Dubai, which has been purpose-built to handle the transportation of all personnel, materials and equipment in support of construction projects on a group of 300 man-made islands, known collectively as ‘The World’.

The contract, awarded through an international competitive tender, also calls for PMBS to provide a fleet of support vessels, including ferries, crew-boats, landing craft, tugs and barges and other specialised vessels. Over the last year, PMOS has mobilised nine Penguin vessels from Singapore to Dubai under its PMBS joint venture.

The latest contract award comes barely a year after PMBS secured its maiden job in the Middle East – a $4 million-a-year ship management and operations contract for a fleet of 10 new Dubai Creek Waterbuses owned by Dubai’s Roads and Transport Authority (RTA).

PMOS general manager and director Sairi Ismail said: “The RTA contract was just a toehold for our Middle East joint venture, but our latest win in ‘The World’ project is a major coup for our group and will enable us to secure a major foothold in the region.

“It is clear that our Middle East strategy has worked well for us, and we intend to mobilise all the personnel and resources needed to make the most of this exciting market.”

Penguin’s founder and executive chairman Heng Kheng Seng said: “We are excited about the prospects of our business in the Middle East, and are committed to supporting the long-term growth of this dynamic region.”

PMBS is a 49-51 joint venture set up last year and owned respectively by PMOS and local partner DEMAT Group, a Sharjah-based marine services and equipment provider in the Middle East, with interests in aluminium ship design, ship building and ship owning.

Early this year, another subsidiary, Pelican Offshore Services Pte Ltd secured a long-term time charter for a new anchor handling, towing and supply vessel in Saudi Arabia.

Penguin International Limited, formerly known as Penguin Boat International Limited, encompasses five business units offering integrated marine and offshore services including high-speed passenger and cargo transportation to ship repair and shipbuilding, industrial services, offshore support services and bunkering.

Penguin owns and operates a fleet of about 60 vessels, as well as shipyards in Singapore and Batam.