Newport woos owners with ship repair financing
Ship repair company Newport Shipping Group has introduced a credit facility enabling owners to stagger the cost of repairs over a year or longer.
Drydocks have traditionally required up to 50% of costs to be paid over a three-month period, sometimes even requiring all costs to be paid before a vessel returns to service. Newport’s financing plan allows for 12 or more monthly payments covering 60% of costs, with 40% of maintenance costs due when the vessel returns to service.
According to CEO Erol Sarikaya, who has been appointed to lead the company’s new executive team: “We offer a comprehensive ship repair service enabling shipowners to minimise working capital outlays and take advantage of our global network. The benefits are clear as 60% of total drydocking and associated maintenance costs are paid through subsequent vessel operations.”
The company explained that typical Supramax vessel may have total maintenance costs of US$600,000, but the financing system could allow for about US$360,000 of this expense to be paid through subsequent monthly installments of US$1,000 a day over 12 months.
Roy Yap, chief operating officer, Newport Shipping, added: “Our credit payment system covers all maintenance costs in addition to drydocking costs, such as spare parts, paint, specialist works, and equipment retrofits, such as a ballast water treatment systems or scrubbers, which can in some cases comprise the majority of a vessel’s total maintenance budget.”
Newport operates a network of six shipyards comprising 13 drydocks capable of handling vessels of all sizes in Turkey, Mauritania, Singapore, Indonesia and China.
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