Mercator Lines arm to buy geared Panamax dry bulk carrier

Mercator Lines (Singapore) Ltd ('Mercator'), a leading Indian-owned international dry bulk shipping company focused on markets such as India and China, today announced that it has entered into a Memorandum of Agreement ('MOA') for the purchase of a geared Panamax dry bulk carrier, under its existing purchase option for approximately US$ 24.2 million.The vessel is a 2000-built vessel constructed by Imabari shipbuilding Co.Ltd, Japan. The vessel is currently hired on a time chartered-in basis by Mercator. The vessel is of 73,652 dwt capacity and is scheduled for delivery in May, 2009. The acquisition is proposed to be financed through a mix of internal accruals and debt.Mercator currently operates a fleet of 11 dry bulk vessels, nine owned and two chartered-in, comprising of geared and gearless Panamaxes and Kamsarmaxes the acquisition will expand Mercator's owned fleet to ten ships comprising of six geared and four gearless Panamaxes and Kamsarmaxes ships and will increase the total aggregate capacity of its owned fleet to 755,432 dwt, while maintaining the total operating capacity at 829,057 dwt.Mercator's strategic expansion of geared vessels to six, further strengthens its position as one of the largest fleet owner of geared Panamaxes not only amongst the Indian owned shipping companies but also in the world.Said Mr. Shalabh Mittal, Managing Director and Chief Executive Officer of Mercator, "The acquisition would further consolidate the company's presence as one of the largest owner in the niche market of geared Panamaxes. We believe our strategy of focusing on our core competencies of geared Panamaxes along with our ability to offer logistics support for the Indian trade will help us face the current challenging times".Mercator's fleet of geared vessels extends the company a distinctive edge to operate in ports with less developed infrastructures such as India, Indonesia. Further the geared vessels facilitate Mercator to offer comprehensive and customized logistic solutions to its customers in India. The company, together with its parent company Mercator Lines Ltd has been extending logistic solutions from the load port to the point of usage, to its customers in India This acquisition, while fortifying the deployment of geared vessels, extends Mercator a stronger position to capitalize on these opportunities.The acquisition is expected to have impact on Mercator's net tangible assets per share, earnings per share and operating results for the current financial year ending March 31, 2010 The Sellers are unrelated to the Directors and controlling shareholder of the Company. None of the Directors and controlling shareholders of the Company has any interest, direct or indirect, in the Charter. The acquisition is in the ordinary course of the Company's business.

Government sets aside Rs10,000 crores for local shipping companies to acquire news ships

The government is considering a 100-billion-rupee package to help local shipping firms finance new vessel acquisitions as global lenders tighten up their purse strings, a junior minister said on Tuesday.

"We have requested the finance ministry to consider a 10,000 crore (rupees) package (for shipping firms)," APVN Sarma, secretary, ministry of shipping, said on the sidelines of a maritime conference.

"Foreign banks are not lending now. Traditionally they've been the lenders for shipping acquisitions. This is some sort of financing for acquisition of new ships by Shipping Corp of India and also by other Indian private shipping companies," he added.
State-run Shipping Corp has planned capital expenditure to the tune of 150 billion rupees in the Eleventh five year plan period and curently has an order pipeline for 29 new ships.
The government will disburse loans of up to 100 billion rupees to shipping firms, Sarma said, but did not elaborate on interest rates and other details.

GE Shipping acquires modern Supramax

Great Eastern Shipping Company Ltd (GE Shipping) on Wednesday announced it has contracted to buy a modern Supramax dry bulk carrier.

"The 2001 built ship of about 52,179 dwt (deadweight tonnage) is expected to join the company's fleet during Q3 FY 2007-08," the shipping and offshore service provider said in a filing to the Bombay Stock Exchange.

GE Shipping planned to purchase this ship to consolidate its dry bulk segment and to participate in the increasing opportunities arising out of strong global commodity demand.

The company's current fleet of 46 ships with an average age of 12.2 years aggregates to 3.22 mn dwt. The new building order book comprises five product tankers to be delivered in the next two years.

(Source: Economic Times)

GE Shipping buys Suezmax tanker

Great Eastern Shipping has signed a contract to buy a modern double hull Suezmax tanker, which is expected to join the company’s fleet by the second quarter of 2007-08.

The Suezmax tanker will enhance and modernise the crude tanker fleet. Additionally, a double hull Suezmax crude carrier earlier contracted in the first quarter of 2007-08 is also due for delivery during the second quarter.

GE Shipping’s current fleet comprises 46 ships with an average age of 12.2 years, aggregating 3.22 million deadweight tonnes. Besides this, the company's building order book comprises five product tankers, which will be delivered during the next two years.

(Source: Economic Times)

Essar eyes shipping, telecom JVs in Vietnam

Essar Group is looking at shipping, telecom and energy joint venture opportunities in Vietnam, Jagdeesh Mehta, president of Essar Vietnam Steel Corp., said on Thursday at an Indo-Vietnam business conference. Vietnamese Prime Minister Nguyen Tan Dung is leading a business delegation to India. The Essar Group and two Vietnamese companies said earlier this year they would establish a $527-million venture to build a hot-rolled steel mill to help reduce the country's dependence on imports of hot-rolled steel coils.

(Source: Economic Times)