The acquisition is a continuation of the company’s trend to diversify and expand its operations in seeking to dominate the maritime shipping industry.
The Clipper Group was slated to receive four bulk carriers after a contract signing with Indian-based Cochin Shipyard Limited (CSL).
Cochin’s contract is indicative of the expansion of the shipping market in Asia, led by China and India. The Indian economy is expected to grow 7 per cent, which means areas like shipping could contribute to that. Similarly, Teekay Shipping, another shippping giant, recently signed two contracts on the Asian market worth over a billion dollars to acquire carriers for the transport of Liquiefied Natural Gas (LNG).
Additionally, CSL is reported to be a leading shipbuilding yard in India and has received stellar ratings from the Indian government for 4 consecutive years for achieving its internal project targets.
With its expansion, it has “evolved into the builder of the largest vessels constructed in India”, including vessels used in national security, such as the Merchant Navy and the Indian Naval Services.
If Cochin lives up to its record of getting its orders completed in time, Clipper could expect to receive its additional bulk carriers according to the time frame outlined in the contracts.
“With a track record of delivering results in record time, the Shipyard has the credit of being one of India’s top 10 public sector undertakings and continues to maintain a steady level of cost-effectiveness in all its ventures,” according to a web site.
Since the Clipper Group signed initial contracts, provisions were made for an additional two ships which would add a total of six bulk carriers to the company’s existing fleet of approximately 240 ships over the next few years.
Additionally, the possibility for two more ships is in the pipeline, confirmed Clipper’s Corporate Administrator, John Moyell.
“We have had new building programs over the last ten years and this is the type of ship we believe is going to be quite in demand over the next few years,” added Mr Moyell.
According to a statement on the company’s web, Torben Jensen, president and CEO of the Clipper Group said, “We decided more than a decade ago to change our strategy from being an operator owning few vessels to go out and buy and order a large number of innovative vessels, often in joint ventures with our partners.
“This not only demonstrates our long term commitment to the industry, it also ensures clients that we are able to meet the demand for versatile tonnage.”
Because of its strategies, Clipper Group maintains that it is well prepared to meet the challenges in the maritime industry.
Additionally, Mr Moyell, who is located at Clipper’s headquarters in Nassau, said the company is one of few to acquire these types of ships. “This is the very first time that foreign ship owners ordered ships of this type in India,” he confirmed.
Mr Moyell would not confirm how much Clipper’s assets were worth or the dollar value of the expansion in its total fleet, and was only willing to say that the addition of the new bulk carrier would expand the company’s economic base.
Named the Bossclip Trader, the double hull bulk carrier is 178.70m long and 28m wide. It has a depth of 14m and can travel up to speeds of 14.30 knots. Additionally, the ship has a single screw diesel engine “for unrestricted worldwide service” and can transport cargo weighing up to 20,000 tonnes.
Clipper Group is an international shipping consortium comprised of Ship Owning, Time Charter Operation, Commercial and Technical Ship Management, Trading, Agency as well as Stevedoring and Investment Companies.
In operation for 32 years, the group has over 70 companies conducting business worldwide and primarily operates bulk carriers, chemical and product and multipurpose tankers.
The Cochin Shipyard Limited, which is responsible for building all six carriers, hosted a launch ceremony for the Bossclip Trader where Indian Union Minister for Shipping, Transport and Highways, T R Baalu chaired the event.
By: BARRY WILLIAMS, Nassau Guardian Staff Reporter
