Essar orders more bulk carriers

Essar Shipping & Logistics Limited (ESLL) in India has contracted to acquire six modern mini Cape bulk carriers of 103,664 DWT each with an option to acquire another three similar vessels. The order for building the vessels has been placed with STX (Dalian) Shipbuilding Co., Ltd., China at an estimated of $65 million each. The vessels are expected to be delivered between July 2011 and January 2012.

These double-bottom newbuildings will be classed by ABS and will incorporate novel design features and the latest technology. They will be environment-friendly and comply with the latest and the most stringent IMO regulations. The vessels will have a length of 253.50 m, a beam of 43.00 m and a loaded draught of 13.60 m.

ESLL envisages tremendous business potential for these vessels as many steel plants and power plants are being planned in Asia and South East Asia. The size of the ships is compatible to be deployed in shipping iron ore and coal to various existing and new steel mills and power generation plants in India and Asia.

In September this year, ESLL had placed an order with ABG Shipyard Limited, India for six geared Supramax bulk carriers at a total cost of $210 million. These vessels will be delivered between December 2009 and March 2011.

These orders are in line with the company?s strategy to strengthen its bulk carrier fleet with modern vessels as world trade continues to grow with the increased economic activities. Currently, ESLL has a total fleet of 28 vessels with a DWT of 1.5 million tonnes comprising bulk carriers, capsize vessels, crude oil carriers, VLCCs, tugs, DSV, product tankers and dredgers.