ESL Shipping Acquires Ice-Strengthened Dry Cargo Vessel from Sweden

ESL Shipping Ltd. has today purchased m/s Credo, a 20,000 dwt dry cargo vessel, which it previously owned jointly with the Swedish Donsöshipping KB.

After the transaction the vessel will be renamed m/s Kallio and transferred from the Swedish flag into the Finnish Register of Ships. ESL Shipping’s vessels have traditionally been named after districts of Helsinki. This modern 1A Super ice-strengthened Eira-class dry cargo vessel was built in China.

ESL Shipping has time-chartered and operated the vessel since 2006 when it initially started sailing. At the time, the cost level of vessels sailing under the Swedish flag was considerably lower than in Finland. Recently, measures taken in Finland to improve the competitiveness of shipping have created the preconditions for the acquisition of the vessel and transferring it under the Finnish flag. In addition to the tonnage tax introduced in Finland, in particular the competitive manning agreement signed with the shipping trade unions assist in creating new jobs on the seas.

The transaction will enable more cost-efficient operation of the vessel. The value of the investment is approximately EUR 13 million and it is estimated to improve ESL Shipping’s operating profit by approximately EUR 1.5 million annually. At the same time, ESL Shipping will sell its minority share in Credo AB, the former owner of the vessel.

ESL Shipping, January 9, 2014