October 11, 2008

Precious Shipping to invest USD 474 million for 15 new vessels

Thailand’s largest shipping firm Precious Shipping has announced that it is planning to spend USD 474 million on 15 new vessels to replace its ageing fleet. It said that 25 of its vessels were more than 20 years of age and needed to be replaced over the next 5 to 7 years.

Mr Khalid Hashim MD of Precious Shipping said that about 80% of the purchase would be funded through bank loans and the rest through cash flow. He added that "The first ship will be delivered in 2010 and the rest will be made successively to 2013."

Precious operates 44 small to medium sized ships, with a combined capacity of 1.13 million DWT and an average age of about 19 years. The fleet carries mainly commodities and building materials.