Mercator expands fleet size with a panamax

Mercator Lines (Singapore) Limited, an Indian-owned international dry bulk shipping company focused on markets such as India, Indonesia and China, announced on Tuesday that it has taken delivery of a gearless panamax bulk carrier.

The vessel built in 1994 by Imabari Shipbuilding Co. Ltd, Japan, has a capacity of about 69,087 DWT and was acquired at a price of US$ 22 million, funded entirely through internal accruals.

The vessel has been fixed on a long term bareboat charter contract for three years with a reputed customer at a daily hire of $12,500 per day for 36-41 months with the charterer having the option of a further extension for 11-13 months period. This contract would bring in revenues of about $14 million over the next three years and about $ 18 million if the option is exercised, the company said.

With this acquisition, Mercator would operate a fleet of 16 dry bulk vessels, thirteen owned and three chartered in comprising geared and gearless Panamaxes and Post Panamaxes with an aggregate capacity of around 1.4 million DWT. (alex)