It is reported that Nanjing Tanker’s wholly owned subsidiary Nanjing Tanker Hong Kong will purchase a very large crude carrier from Sinotrans Shipping through a five year bareboat hire purchase.

Nanjing Tanker Hong Kong will pay annual rent of USD 9.42 million for the vessel to Sinotrans Shipping during the five year period and USD 80 million afterwards to secure ownership of the VLCC.

Both Nanjing Tanker and Sinotrans Shipping are subsidiaries of Sinotrans Group. The VLCC purchase is part of the integration of the parent group’s oil shipping business and is intended to eliminate horizontal competition between the two subsidiaries.

(Sourced from www.capitalvue.com)