ESPLL to purchase 4 Supramax vessels

Essar Shipping Ports and Logistics Ltd (ESPLL), part of the Essar Group, has achieved financial closure for the purchase of four of the proposed six Supramax dry bulk carriers at a cost of $ 218 million, a top company official disclosed here.

This is part of the Group’s $630-million capital expenditure (capex) programme in the shipping business.

Six ships, each of 54,000-DWT, are being built at ABG Shipyard and are likely to join Essar’s fleet of 25 ships by 2011. Its current order book comprises 12 newbuildings, raising its combined capacity from 1.40 million-DWT now to 2.36 million-DWT by 2011.

"The six ships are being funded through a debt of $153 million and equity of $ 65 million. Large European shipping banks participated in the lending. Despite the downturn, we are pretty comfortable raising debt through banks and equity through internal accurals," the official said.

According to Exim News Service, the company is also planning to purchase six mini Cape dry bulk carriers at a cost of $ 412 million. The ships, which will be built at STX Shipyard, will be funded through a debt of $288 million.
"We expect to achieve financial closure for purchasing these ships on or before June 2010," he disclosed.

ESPLL’s total committed capex programme involves an investment of $1.6 billion, which includes setting up a 30-million tonne all-weather deep draught port at Hazira and an integrated terminal facility at Salaya in Gujarat for handling coal and pet coke used in power plants.

The Group, which owns a fleet of 13 onshore rigs and one semi-submersible rig, also plans to increase its fleet to 16 rigs by 2011, including two jack-up rigs that are being built at ABG Shipyard at a cost of $457 million.

In the first quarter of the current fiscal (April-June), the logistics division of ESPLL handled 5.63 million tonnes of cargo. The division also recently commenced its new business initiative in project cargo handling and transportation, he explained.

 
(Source: Transport Weekly)