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Our Bureau

Mumbai, Dec. 9 The Essar Group said on Sunday that it would be investing around $390 million (Rs 1,536 crore) for buying six new ships.

Essar Shipping and Logistics Ltd, the Cyprus-registered holding company of Essar Shipping Ltd, has placed orders for six mini cape bulk carriers with a Chinese shipyard.

The vessels with 1.03 lakh DWT each are contracted for delivery between July 2011 and January 2012. The company may order three more such vessels, ESLL said in a release.

The order has been placed with STX (Dalian) Shipbuilding Co Ltd in China.

A company official said the fleet acquisition will be financed through a combination of equity and debt.

Though these vessels will not be owned directly by Essar Shipping, the Indian company, it may operate some of them, he said.

The promoters of Essar Shipping had tried to de-list the company, but could not get the desired response from the shareholders.

The group envisages tremendous business potential for these vessels as many steel and power plants are being planned in Asia and South East Asia. The size of the vessels is suited to the potential requirements of these plants for transporting coal and iron ore.

Earlier in September, the company had placed an order with ABG Shipyard for six Supramax Bulk Carriers for $210 million or approximately Rs 840 crore.

These vessels are to be delivered between December 2009 and March 2011.

The acquisitions of bulk carriers are in line with the company’s strategy to strengthen its bulk carriers with new, modern vessels as the world trade is to continue to grow with the increased economic activities.

ESLL has a total fleet of 28 vessels with 1.5 million DWT.

These comprise bulk carriers, capsize vessels, crude carriers, VLCC, tugs, DSV, product tanker, and dredgers.

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