Global Carriers buys new petroleum tankers from China

Global Carriers buys new petroleum tankers from China

Global Carriers Bhd has purchased two new 7,000 deadweight tonnage (DWT) double hull clean petroleum product (CPP) tanker vessels from China’s Ningbo Dongfang Shipyard.

Chairman Datuk Azlan Hashim said the vessels, priced at US$9.98mil each, were expected to be delivered in May and August 2008 respectively.

”The new double hull CPP tankers will be utilised to cater for the West and East Malaysia and Singapore routes,” he told reporters after Global Carriers signed the purchase agreement with Ningbo Dongfang Shipyard yesterday.

The purchase would be financed through a combination of internally generated funds and bank borrowings.

Azlan said the company also had the option to purchase two more tanker vessels of similar size and capacity within the next six months.

”We are quite confident of buying two more vessels from them,” he said, adding that the company was on track to increasing its DWT capacity from 48,000 DWT to approximately 100,000 DWT by 2011.

Global Carriers aims to position itself as a niche CPP carrier and has set aside approximately RM250mil to replace its fleet of single hull tanker vessels with double hull tanker vessels over the next five years.

The company has a fleet of six 7,000 DWT single hull and one 12,000 double hull tanker vessels.

Azlan said company’s vessels were generating good revenue, with 60% of its fleet being leased out on charter basis. He said the 7,000 DWT vessel was earning US$6,000 per day while the 12,000 DWT vessel was bringing about US$12,000 daily.

Going forward, the company might diversify into shipping other energy related products such as crude oil, gas, palm oil and also chemical products, he added.

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