Dubai-based shipping firm to splurge on new fleet

Tomini Shipping reveals plans to buy 20 new vessels.
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Tomini Shipping has revealed plans for further expansion following an order for nine new bulkers.

Chairman Imtiaz Shaikh has told Arabian Supply Chain that the Dubai based company has set itself a target of at least 20 new vessels over the next few years.

“We intend to continue ordering new ships consistently over the next years with a minimum target of at least 20 ultramax vessels,” Shaikh said.

He says that while prospects in the Gulf region are bright due to their growth rate, internationally he feels there are still some years of pain before the eventual gain in the bulk carrier sector.

That prompted Tomini Shipping to return to the dry cargo market, placing an order for nine new ultramax bulkers.

Headquartered in Dubai, the Pakistani shipowner ordered the 64,000-dwt eco-design vessels at China Shipbuilding Industry Corp.

Shaikh confirmed the order to Arabian Supply Chain, explaining the company’s motives.

“We feel the timing is right time because we believe newbuilding prices have bottomed, so it’s an ideal time to enter the market, and we chose this yard because we found it to be the best in quality and building standards.”

He would not reveal exact details regarding the cost of the vessels.

“Due to the private and confidential nature of this deal I am unable to provide the specific price, however I can suggest a figure around $26m each approximately,” Shaikh said.

He says Tomini have arranged conventional financing “for a conservative 50% of value” and revealed that delivery of the vessels is scheduled to begin in the third quarter of 2015, concluding in the second quarter of 2016.

On its website Tomini says throughout the years it has “operated some 70 vessels on time charter and owned more than 100 vessels,” including 50 dry cargo vessels up to cape size and 55 tankers.

Shaikh says it has been examining opportunities to re-enter the bulk carrier market, but only through newbuildings.

“We have been second-hand players for the last 60 years, so it was about time we shifted to newbuildings.”
 

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