Essar orders bulkers from ABG

Cyprus-based sea transportation company Essar Shipping & Logistics Ltd (ESLL), which is a unit of the diversified Essar Global Ltd, has placed a mega order for constructing six bulk carriers with ABG Shipyard. The Mumbai-based shipbuilder will construct six geared Supramax bulk carriers at a total contract price of $210 million.

The 54,000 DWT vessels, with a length of 190 metres, beam width of 32.26 metres, will be built at an estimated cost of $35 million each and will be delivered between December 2009 and March 2011, and will be fitted with 36-tonne cranes with the grab.

“It?s a strategic investment in line with Essar?s future plans. The dry bulk market is hot now, and it is going to remain attractive for a few more years,” ESLL chief executive Sanjay Mehta told ET.

Essar Shipping, a subsidiary of ESLL, already owns and operates 27 ships including very large crude carriers, product tankers and bulk carriers. Mehta said the acquisition has been made keeping in view the increased demand for larger-size vessels in the Handymax segment of the dry bulk trade. “These vessels will be in high demand over the coming years considering the fact that the entire Handymax segment is inching towards larger tonnage. We will deploy these vessels in global trade,” said Mehta.