Pacific Basin looks to expand its fleet
March 28, 2013 Category Logistics, Ports & sea transport
The dry bulk operator Pacific Basin Shipping is planning to expand its fleet, even though the dry bulk market is likely to remain challenging in 2013, according to Chief Executive Mats Berglund. The firm, which has USD753 million for vessel acquisitions, has already spent USD122 million since September to acquire eight dry bulk ships. These comprise seven second-hand Handysize and Handymax vessels and a new Handysize which was sold by a shipyard after the original owner failed to take delivery. Berglund said the firm’s two key objectives were to buy “more Handysize and Handymax ships at attractive prices” and expand its customer and cargo base. He confirmed that the company has sold its 45% interest in a cargo terminal in Nanjing, which it bought for USD16 million in 2007, as part of a continuing disposal of non-core assets. Executive Director Wang Chunlin, who was recruited to develop the ports business, will step down at the annual meeting in April. Berglund said Pacific Basin, one of the world’s biggest operators of Handysize and Handymax vessels, with 172 owned and chartered ships, outperformed the Baltic Handysize index by 44% last year, thanks to higher charter earnings particularly on return voyages, its large fleet and strong links with charterers. However, overall daily charter rates were still down, by 22% to 23% last year, which reflected continued weakness in the dry bulk market, Berglund said. He added the firm was also expanding its towage business in Australia, with the launch of harbor towage operations in Newcastle later this year using tugs redeployed from the Middle East. Pacific Basin was also “well positioned to win more business” on Australia’s liquefied natural gas projects, where the firm is providing construction support and towage on the Gorgon project and is eyeing Chevron’s Wheatstone LNG development. Overall, the firm reported a USD158.5 million net loss last year from a USD32 million net profit in 2011. This included a USD199 million write-down on its ferry business, the South China Morning Post reports.
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