Pipavav faces order cancellations

The Athens-based company is in negotiations with the shipyard to cancel the contract involving construction of 12 Panamax bulk carriers for $44 million each and is under pressure from its financiers to get a new agreement signed.

Pipavav Shipyard has not been able to deliver any of the 24 Panamax bulk carriers that were ordered by Alba, Golden Ocean and Setaf Saget, a subsidiary of French shipping group Bourbon. It has suffered from technical problems building a drydock and commissioning new cranes, and had problems in hiring enough experienced workers to build the vessels.

Pipavav Shipyard could lose all of the Panamax carriers on the $900 million orderbook because of these problems if the three shipowners pull out entirely.