Shuntian Shipbuilding (Yangzhou) receives order for 6 64K bulk carriers

2013-05-29 09:49

Shuntian Shipbuilding (Yangzhou) Co., Ltd. has received an order for 6 64,000-ton bulk carriers based on a recent lease and sale contract for 12 such vessels signed with Shun Gao Shipping Co., Ltd.

Shuntian Shipbuilding (Yangzhou) Co., Ltd. and Shun Gao Shipping Co., Ltd. are both subsidiaries of Shuntian Shipbuilding.

This series of vessels is a new energy-efficient and environmentally friendly Panama-type bulk carrier launched by Shanghai Ship Design and Research Institute. It is an internationally recognized vessel type, scheduled to commence construction in 2013 and be delivered successively starting in 2014.

In addition, according to the Shipbuilding Industry Management Department of Yizheng Economic and Information Commission, Shun Gao Shipping Co., Ltd., a wholly-owned subsidiary of Shuntian Shipbuilding, recently signed a lease and sale contract for 12 64,000-ton bulk carriers. Six of these vessels are new orders for Shun Gao Shipping; the remaining six are re-signed contracts, modifying a lease and sale contract signed on April 23, 2012. The main modifications are postponements of the advance payment and delivery dates.

The lease term for the newly signed six vessels is 10 years. The lessee has the right to purchase the vessel after a certain number of lease years or the obligation to purchase it after the lease expires. The total rent and purchase amount is approximately US\$41 million per vessel, with a total contract value of approximately RMB 1.5 billion.