Essar Shipping to acquire 6 Chinese vessels

MUMBAI: Indian conglomerate Essar announced on Sunday that they are to acquire six Chinese shipping vessels for $390 million.
    
Essar Shipping and Logistics Ltd has contracted STX (Dalian) Ship Building Company of China for acquiring six modern mini cape bulk carriers and has the option of checking three more such vessels.
    
Essar Shipping which already has a fleet of 28 vessels with a capacity of 1.5 million DWT said, "the vessels are expected to be delivered in seven months, beginning July 2011.
    
The estimated cost of the vessel of 103,644 DWT is 65 million dollar each and these double(RPT) double bottom vessels would be built with conforming (RPT) conforming to the standards of the American Bureau of Shipping.
    
Essar Shipping said that it foresaw a tremendous business potential for these vessels as many steel and power plants are being planned in Asia and South East Asia.
    
Incorporating the futuristic design and the latest technology, the environment-friendly ships are, "compatible to be deployed with various existing new steel mills and power generation plants in India" for iron ore and coal transportation requirements.
     
The contract for the Chinese vessels follows and order placed by the company with ABG Shipyard for acquiring six modern bulk carriers at a cost of 210 million dollars.
     
These vessels would be delivered between December 2009 and March 2011.
   
The company said that the fleet expansion was part of the strategy to strengthen its bulk carrier fleet with modern vessels to capitalise the opportunities arising from the growing world trade.