Shipping & Shipbuilding News - 15 February 2007
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Cyprus Firm Takes Two Newbuild From China
Ocean Tankers In $21m Deal

Ocean Tankers Holdings Public Company Ltd., the first ocean-going maritime company to list on the CSE last December, has signed a contract valued at USD 21 mln for the delivery of a pair of newbuild chemical tankers from China’s Yangzhou Kejin Shipyard Co Ltd.

The official signing ceremony took place at the Cyprus Marine Club in the presence of Communications Minister Haris Thrassou, the ambassador of China in Cyprus, Zhao Yali and other guests from the shipping and finance communities.

During the ceremony, the company’s executive vice president, George M. Ioannides presented Ocean Tankers’ financial report and projections and argued the advantages of listing on the CSE.

The Communications Minister congratulated the company on its new venture and referred to the significant contribution of the maritime industry to the Cyprus economy, but to the transport and communications sector as well.

Thrassou added that this deal will also contribute to further improvement of trade relations with China.

Xie Chuanbin, Managing Director of Yangzhou Kejin Shipyard said this deal marks the start of a long relationship between the two companies.

The two new chemical tankers have a cargo capacity of 4,200 tonnes dwt each and will fly the Cyprus flag, employing a crew of 15 on each vessel, mostly Russians. The first tanker will be delivered at the end of March and the second at the end of June.

The General Director of the China Classification Society in Athens, Tang Minjie, who signed a cooperation agreement with Ocean Tankers’ associate shipmanagement company, Admibros, said this was the first Cyprus company to cooperate with them and pledged to provide the best possible assistance and services.

C. Anagnostopoulos, General Manager of ABN Amro Bank, who, together with AB Bank will finance the purchase of the new ships, talked of the confidence the financiers have in Ocean Tankers and justified the current funding programme.

Michael Ioannides, the Executive Chairman of Ocean Tankers was reassuring in that the company’s fleet enhancement plan would continue with double-hull vessels as declared in the flotation prospectus, which will have even greater positive results in the future.

In past statements Ioannides has said that the future prospects for the company bode well as it was launched with a fleet of three nearly-new vessels and with the rapid deployment of more ships will be able to have an early advantage in the growing worldwide tanker business.

Ocean Tankers currently employs the 4,500 dwt Eleousa Trikoukiotissa oil and chemical tanker built in 2000, the 7,640 dwt Timi product tanker built in 2005, the 8,055 dwt Victor Dubrovsky oil and chemicals tanker built in 1997 and the 5771 dwt Kalia merchant tanker built in 1999 and purchase last December for USD 10.8 mln.

As major economies such as China continue absorb large orders of fuel, raw materials and chemicals, the demand on tanker companies to provide more cargo shipments will continue to rise, benefiting Ocean Tankers with increasing revenue, as other competitors have yet to switch from single-hull to twin-hull tanker ships.


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