Tomini Shipping’s first ever newbuilding order is just the start of the company’s re-emergence as a dry cargo owner, after it announced yesterday an order for nine eco ultramax vessels in China at a price TradeWinds understands is around $25m per ship.
Chairman Imtiaz Shaikh says Tomini plans to build a fleet of up to 25 ultramaxes by adding two vessels per year on average after the ninth ship is handed over by China Shipbuilding Industry Corp (CSIC).
Deliveries of the 64,000-dwt vessels will begin in the middle of 2015.
“We believe the timing is right and the return on investment even at today’s low rates, easily pays off debt,” he told TradeWinds.
“Besides we prefer to play it safe hence we are only borrowing 50%.
“Critically, these vessels are the latest in design and economy and in our humble opinion the best opportunity in the market place today.”
Shaikh credits CEO Khalid Kayani with the order which he describes as his ‘baby’.
For the past 25 years Tomini has bought used vessels without needing to borrow money from the banks, Shaikh says.
The company foresaw the onset of the financial crisis and sold most of its assets helping to build a warchest for its expansion.
“Now we find ourselves well positioned to order a brand new fleet based on 50% financing as for the first 10 years it requires relatively minimal maintenance,” he says.
“Our internal analysis shows that we will be able to pay back loans much earlier than agreed.
“Our approach is that after paying the loan at the earliest we should be able to raise our fleet to 25 vessels over the next 10 to 15 years.”