Cape Asia to cash in from capesize sale.
Cape Asia, a consortium formed by six of Asia"s leading bulk carrier owners, is set to make windfall profits with plans to order a capesize newbuilding for $52.5m, while selling a five-year-old capesize vessel for $55m.
Sources said the newbuilding deal is expected to be inked ?fairly soon? with a mainland Chinese shipyard.
The group comprises Hong Kong"s Wah Kwong Maritime Transport, U-Ming Marine Transport (Singapore), Kappa Navigation Corp, Regal Navigation, TCM and Grand View Investments.
Insiders were unable to give any details of the likely shipyard that would win the deal ahead of the contract signing.
But Wah Kwong has been involved in orders for four capesize bulkers, varying in size between 174,000 dwt and 177,000 dwt, contracted at Shanghai Waigaoqiao Shipbuilding and an 180,000 dwt vessel ordered from Dalian Shipbuilding International Corp.
The four capesize ships ordered from SWS include the 2005-built 174,101 dwt Mineral Cape Asia, which the group has agreed to sell to Chinese buyers for $55m. The Hong Kong-flagged vessel is on charter to Bocimar.
Wah Kwong Maritime Transport owns a 16.7% interest in the Cape Asia consortium, while each of the other partners has a similar shareholding.
Speaking at the Marine Money Greater China ship finance forum on Tuesday, Wah Kwong Maritime Transport chief executive Tim Huxley confirmed the sale of the Mineral Cape Asia.
Commenting on the sale and purchase and newbuilding markets generally and asked if capesize newbuilding prices could dip below $50m he said: ?It probably has already?.
Pacific Basin Shipping treasury director Sainath Venkatrao and Golden Ocean chief executive Herman Billung added that the cash flow positions of acquisitions were more important than the actual price paid for the ships.