Sinotrans Shipping Signs Chinese Vessel Deals

6 January 2011 (Last Updated January 6th, 2011 18:30)

Hong Kong-based drybulk carrier Sinotrans Shipping has sold an oil tanker under a $100m contract to a tanker transportation firm based in Haian, Jiangsu province, China. Sinotrans Shipping indirectly owns a 50% stake of the Haian buyer and the oil tanker will be delivered between 1 Apr

Hong Kong-based drybulk carrier Sinotrans Shipping has sold an oil tanker under a $100m contract to a tanker transportation firm based in Haian, Jiangsu province, China.

Sinotrans Shipping indirectly owns a 50% stake of the Haian buyer and the oil tanker will be delivered between 1 April and 31 May this year.

In addition, Sinotrans has signed a five-year contract to lease an oil tanker to Ji Sheng Marine, a subsidiary of the controlling shareholder of Sinotrans Shipping for $127m.

Sinotrans Shipping said the proceeds will be used to replenish the company’s working capital.

It has also signed a deal with MS Tanker Shipping to purchase a vessel for $100m and another contract with Nanjing Tanker’s wholly owned subsidiary, Nanjing Tanker Hong Kong, to sell a very large crude carrier.

Nanjing Tanker Hong Kong will pay an annual rent of $9.42m for the VLCC to Sinotrans Shipping during the five-year period, and $80m after the term to secure ownership of the vessel.

Nanjing Tanker and Sinotrans Shipping are subsidiaries of Sinotrans Group.