August 22, 2008

Essar Shipping orders 6 bulk carriers

It is reported that Essar Shipping & Logistics has placed an USD 210 million order for 6 Supramax bulk carriers with ABG Shipyard. The vessels, to be built at an estimated cost of USD 35 million each, will be delivered between December 2009 and March 2011.

The new double hull and double bottom vessels would be environment friendly and incorporate futuristic design while complying with the latest and most stringent international maritime organization regulations. The vessels will have a length of 190 meter, a beam width of 32.26 meter and deadweight of 54,000 tonnes and fitted with 36 tonne cranes with the grab.

These vessels are expected to be in high demand over the coming years considering the fact that the entire handymax segment is inching towards larger tonnage. Essar plans to deploy these vessels for global trade. The acquisition has been made keeping in view the increased demand for larger size vessels in the handymax segment of the dry bulk trade.

Mr Sanjay Mehta CEO of Essar Shipping & Logistics said that “The decision to build these 6 bulk carriers stems from Essar’s strategy to be equipped for future business needs. These vessels will go a long way in consolidating our position.”

Essar Shipping & Logistics is a part of Essar Global Limited. It has 5 operating companies in its fold, including Essar Oilfields Services, which focuses on offshore and onshore drilling activities and Vadinar Oil Terminal, which has invested in crude oil and petroleum product terminals, Essar Logistics, which is in the business of logistics management, trans shipment and cargo handling services, Essar Shipping, which owns and operates 27 ships including VLCCs, product tankers and bulk carriers and Essar Bulk Terminal, which specializes in building and operating bulk terminals and also undertakes dredging operations.