The Hindu Business Line : W. Asia Maritime in deal with Japan firm to charter bulk carrier

Mr Takashi Saito, General Manager, Ship & Marine Project Division, Machinery Business Unit, Mitsui & Co Ltd, and Mr Abdul Qadir, Managing Director, West Asia Maritime Ltd at the signing of the MoU in Chennai on Monday. - Bijoy Ghosh

Chennai , Feb. 13

WEST Asia Maritime Ltd (WAM), the Chennai-based ship owning and operating company, has signed a $33.52 million (Rs 150 crore) deal with Mitsui & Co, Japan, for taking a bulk carrier under bare boat charter from the Japanese company.

The 56,120 DWT (dead weight tonnage) IHIWU geared vessel is to be delivered in the first quarter of 2008 and will be chartered for 12.5 years. The vessel will be trading worldwide for the movement of dry bulk cargoes, according to Mr Abdul Qadir, Managing Director, WAM.

For the first time an Indian shipping company has acquired a ship through bare boat charter under which a vessel charterer has complete possession and control of the ship, including the right to appoint its crew. WAM would get the Japanese-built vessel from Mitsui for a long period with minimal investment. The company also has the option to buy the vessel at any time during the charter period at a pre-determined price.

Promoted by the $2.3-billion Dubai-based Emirate Trading Agency, WAM and its Singapore-based subsidiaries own a fleet of 23 bulk carriers and two chemical tankers, and moved 13.08 million tonnes during 2004-05. The company plans to increase the fleet size to about 50, and half of them would be on bare boat charter, he said.

According to Mr Qadir, WAM and its subsidiaries achieved a net profit of Rs 74.7 crore on a turnover of Rs 997.13 crore for fiscal ending March 31, 2005.

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