November 22, 2008

Sinotrans ink agreement with FFDAX for bulk cargo carriers

Sinotrans Shipping Corporation Limited announced that it has sign an agreement with FFDAX Inc to buy two bulk cargo carriers of 176,000 DWT each for USD 194 million. The purchase will be funded by internal resources and bank loans

According to the released, the two bulk cargo ships to be built by Zhoushan Jinhaiwan Shipyard Company are expected to be delivered at the end of 2009. Sinotrans Shipping can then increase its share in the market for imported iron ore in China.

As of December 31st 2007, Sinotrans Shipping had a fleet of 26 dry bulk cargo ships, including two multipurpose vessels, 13 Handymax vessels and 11 Panamax vessels being used for transportation of dry bulk cargos, such as iron ore, coal, cereals, steel and other commodities along major trading routes in the world.