Essar to buy 6 Chinese vessels

Indian conglomerate Essar on Sunday announced in Mumbai that it would acquire six Chinese shipping vessels for US$ 390 million. Essar Shipping and Logistics Ltd has contracted STX (Dalian) Ship Building Company of China for acquiring six modern mini cape bulk carriers and has the option of checking three more such vessels. Essar Shipping which already has a fleet of 28 vessels with a capacity of 1.5 million DWT said, “the vessels are expected to be delivered in seven months, beginning July 2011.”

The estimated cost of the vessel of 103,644 DWT is $65 million each. Essar Shipping said that it foresaw a tremendous business potential for these vessels as many steel and power plants are being planned in Asia and South East Asia. The ships are compatible for iron ore and coal transportation requirements.