STX Pan Ocean orders new car carriers

STX Pan Ocean in Korea is expanding its fleet of PCTCs (pure car and truck carrier) as part of the company’s strategy to move away from its dry bulk business to minimise the impact of fluctuations in freight rates, as well as to diversify and balance revenue sources.

STX has commissioned a substantial shareholder, STX (Dalian) Shipbuilding, to build four new 6,700 CEU carriers for around $300 million. Two vessels will be delivered in late 2009 while the remaining two will be delivered about six months later.

The new orders are in line with STX’s planned investment of $800 million for 16 vessels this year. Apart from China and Korea, STX believes the demand for car carrier services will be driven by a number of key trends in the automobile industry. These include a rising demand for high and heavy cars such as sport utility vehicles, multipurpose vehicles and trucks as well as increased transportation of used cars.