
Sinokor expands crude oil transport, plans to sell half of bulk carrier fleet
SEOUL : The domestic shipping giant Sinokor Merchant Marine is reportedly pushing for the sale of half of its bulk carrier fleet that it currently operates. Analysts suggest this is in response to establishing a collaboration with the multinational commodity trading company Trafigura, aimed at restructuring its business around crude oil transportation.
According to industry reports on the 30th, Sinokor Merchant Marine is in the process of selling four Cape-size bulk carriers (ships with a deadweight tonnage of 170,000 or more) and three Panamax bulk carriers (ships with a deadweight tonnage of around 80,000).
All of these ships were built between 2011 and 2012, with the total sale price, including charter delivery, reported to be $163 million (about 225 billion won). Sinokor Merchant Marine operates a total of 14 bulk carriers, including the seven being sold, three 180,000 DWT class ships, one 130,000 DWT class ship, one 100,000 DWT class ship, and two 80,000 DWT class ships.
Industry analysts predict that with the new partnership formed with Trafigura, Sinokor Merchant Marine will restructure its business around tanker vessels.
Since the beginning of this year, Sinokor Merchant Marine has established a partnership with Trafigura and launched a joint venture called ‘Lucky Maritime’ last month to promote integrated operations of large crude oil carriers (Very Large Crude Carriers, VLCCs). It is reported that Lucky Maritime plans to increase the number of operational VLCCs to over 100, aiming to capture 12% of market share.
Sinokor Merchant Marine is expanding the scale of its tanker vessels operated by its subsidiaries, including Lucky Maritime, Sinokor Petrochemical, and Heung-A Shipping. Last year alone, Lucky Maritime added six tanker vessels, and Heung-A Shipping also expanded by adding one tanker vessel. The total number of tankers operated by Sinokor Merchant Marine, including VLCCs, is reported to be 39.
Industry analysts suggest that Sinokor Merchant Marine is expanding its related business in response to projections of tanker supply shortages. The tanker specialist analysis firm Tankers International reports that among the currently active VLCCs, 130 are over 20 years old, and only 70 new VLCC vessels are expected to be supplied in the next three years, leading to a supply shortage.
Sinokor Merchant Marine’s revenue last year was 3.4018 trillion won, reflecting a 10% increase from the previous year, and operating profit surged by 55% to 534 billion won. Sinokor Merchant Marine stated that there is nothing they can confirm regarding the sale of bulk carriers.
Source : ChosunBiz