Sinotrans Shipping to acquire four 64,000dwt bulkers for $103.2m

8 January 2014 (Last Updated January 8th, 2014 18:30)

Sinotrans Shipping has entered into a deal with The Foreign Economic & Technical of China Chang Jiang National Shipping Group (CCJN) to acquire four 64,000dwt bulkers for $103.2m.

Sinotrans Shipping has entered into a deal with The Foreign Economic & Technical of China Chang Jiang National Shipping Group (CCJN) to acquire four 64,000dwt bulkers for $103.2m.

The four bulkers will be built at CCJN’s Jinling shipyard, and are scheduled for delivery in the second half of 2015.

The acquisition of the energy-saving vessels will allow the company to optimise its fleet, expand the capacity of its self-owned dry bulk vessels and increase the flexibility to its chartering business.

Sinotrans Shipping said the new-build deal was possible because of the relatively low construction costs of new vessels at present.

The four vessels will be used by Sinotrans Shipping’s wholly-owned subsidiaries Great Kent, Federal Delight, Victory Action and On Great.

The company intends to make a cash payment for the vessels and is expected to receive funding from its internal resources and bank borrowings.

The transaction is subject to the approval of independent shareholders.