Pipavav faces order cancellations
Greek shipowner Alba Maritime Services will decide in the next two weeks whether to cancel construction of up to 12 ships it ordered from the troubled Pipavav Shipyard in India because of expected delivery problems.
The Athens-based company is in negotiations with the shipyard to cancel the contract involving construction of 12 Panamax bulk carriers for $44 million each and is under pressure from its financiers to get a new agreement signed.
Pipavav Shipyard has not been able to deliver any of the 24 Panamax bulk carriers that were ordered by Alba, Golden Ocean and Setaf Saget, a subsidiary of French shipping group Bourbon. It has suffered from technical problems building a drydock and commissioning new cranes, and had problems in hiring enough experienced workers to build the vessels.
Pipavav Shipyard could lose all of the Panamax carriers on the $900 million orderbook because of these problems if the three shipowners pull out entirely.
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