Saturday, June 20, 2009
Fredriksen orders still dominate at Jinhaiwan despite ownership change
Michelle Wiese Bockmann - Friday 19 June 2009
COMPANIES controlled by the powerful shipping tycoon John Fredriksen are uncertain about the impact of major ownership changes at China’s Zhoushan Jinhaiwan shipyard, despite the fact that nearly 60% of the vessels on order at the yard have been contracted by his interests.
New majority stakeholder Grand China Logistics, owned by a major Chinese airline, is not only taking a 51% share, but ordering 30 bulk carriers worth $2bn at the fledgling yard.
Mr Fredriksen’s Golden Ocean Group’s has seven capesize and six kamsarmax bulk carriers on order at Jinhaiwan, with another six recently transferred off the books to a single purpose vehicle to cut down capital expenditure. His tanker arm Frontline recently cancelled two very large crude carriers at the yard, but deposits were transferred to another four still on order there.
Asked if the 30-bulker order could be to fill existing slots due to cancellations, Golden Ocean Group chief executive Herman Billung said: “I don’t really know. Frontline did cancel some vessels, but how the yard structures the entire block fabrication at the yard is difficult for me to say.
“In China there are a lot of letters of intention; whether [the new order] is really firm, or a letter of intent, is not easy for me to say.”
He said any suggestion that the orders would incorporate cancellations was “pure speculation”.
“It must be positive for the yard as they are getting a new shareholder.”
Fredriksen Group vessels comprise 3.5m dwt of the 6.1m dwt on order, according to the Clarksons newbuilding database. Golden Ocean has seven of the 22 capesizes on order, and the other 10 ships are Fredriksen owned.
Mr Billung said there were no delays at the yard, which delivered its first vessels, two product tankers for Frontline, earlier this year.
Grand China Logistics has reportedly ordered 18 capesize and 12 kamsarmax bulkers. The company, which has signalled its intentions to build a strong bulk carrier fleet, took advantage of low prices to purchase a secondhand capesize vessel in late 2008, according to Shanghai-based brokers.
