Newport woos owners with ship repair financing

An extended financing deal offered by Newport Shipping will enable owners to pay for repairs from income earned by repaired vessels An extended financing deal offered by Newport Shipping will enable owners to pay for repairs from income earned by repaired vessels

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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