Sinotrans open to expanding its tonnage

Sinotrans Shipping is eyeing the acquisition of more dry-cargo and container ships and could expand by chartering tonnage, senior executives from the firm confirmed yesterday.

Li Hua, executive director and deputy general manager, said the firm's target of building a fleet of five to seven million deadweight tonnes (dwt) over at least the next five years had not changed.

The company has a fleet of 53 ships totalling 3.35 million dwt, including two vessels that were delivered in February.

Xie Shaohua, the firm's financial controller, added: 'We are looking for opportunities. As of now we have no new contracts.' He said the company had an 'open attitude' towards acquiring second-hand or newly built tonnage after ship prices dropped last year.

Li indicated that second-hand vessels acquired now would enter the Sinotrans fleet with market conditions expected to be sluggish. But new ships ordered now would be delivered in one or two years, by which point conditions may have improved.

Tang Zhongshan, executive director and general manager, said new ships would also be more fuel efficient. While the firm owns its fleet of dry cargo bulk carriers, container ships and a tanker, 'as we develop we might have more chartered-in vessels', he said.

Xie forecast total seaborne dry cargo volumes would rise by 4 per cent this year as China and India continued to increase coal imports and the volume of minor bulk cargoes, including fertiliser, cement and steel, also rise. But charter rates are expected to remain under pressure as the global dry bulk fleet is expected to climb by 12.1 per cent this year, or 94.5 million dwt.