Sinotrans Shipping Orders Six Handies

Hong Kong-listed Sinotrans Shipping Limited today entered into six new shipbuilding agreements with Shanhaiguan New Shipbuilding Industry, a subsidiary of China Shipbuilding Industry Corporation, to construct six 38,800 dwt dry bulk carriers.

Each Handysize is valued at around USD 23.2 million, adding up to an aggregate consideration of about USD 139 million.

The deliveries are expected to take place throughout June, August, October and December of 2017; and March and May of 2018.

Sinotrans Shipping says that given the fact that current costs to build a new vessel are relatively low and that the company has sufficient capital resources, the construction of these ships will enable the company to optimize the composition of its dry bulk fleet, expand the capacity of its self-owned fleet of dry bulk vessels and increase the flexibility in the development of the company’s chartering business of dry bulk vessels.

The terms of the transactions were deemed to be competitive, with reference to the market information Sinotrans Shipping had obtained from shipbrokers and its own analysis of sale and purchase transactions of similar newly built vessels concluded recently in the market.