ABG set to win Singapore order
India’s biggest private shipbuilder, Mumbai-based ABG Shipyard, is set to win a $114 million (Rs518.7 crore) order to construct four cement carriers for Singapore-based Associated Bulk Carriers.
This order will be ABG’s first contract since August 2008 will be signed in a few days, a spokesman for the shipbuilder said. The newbuildings will each carry up to 20,000 tonnes of cargo and will cost $28.5 million. Delivery is scheduled between August 2011 and April 2014.
Associated Bulk Carriers is 50% owned by Bangkok-based dry bulk cargo specialist Precious Shipping with the balance equity held by PFS Shipping (Singapore), a wholly owned subsidiary of PFS Shipping (India). Precious Shipping has signed long-term contracts with Aditya Birla Group’s UltraTech Cement in December 2009 to haul cement for a minimum of 15 years and extendable to 20-25 years using three firm and one optional cement carriers.
Associated Bulk Carriers was formed to own and operate the cement carriers used for the UltraTech contract. It will also look for similar contracts from other cement producers in India. Precious Shipping is ABG’s biggest customer and the yard is building 18 dry bulk cargo ships for Precious Shipping at a total cost of $518 million.
