Navios forms joint venture with major Japanese owner

Angeliki Frangou, chairman and ceo of Navios Group Angeliki Frangou, chairman and ceo of Navios Group

Navios Maritime Holdings has entered into a strategic partnership with an undisclosed significant shipowner and operator based in Japan to operate six dry bulk carriers for a start.

The new joint venture, named Navios Asia, will initially acquire five panamaxes and one kamsarmax vessel, with an average age of 6.1 years, for $114m. The vessels are expected to be delivered during the third quarter of this year.

Five of the vessels are subject to charters with an average charter rate of $11,474, with optional years at higher rates.

Navios will administer Navios Asia and provider commercial management to the fleet while the Japanese partner will offer technical management.

Navios Asia will be 51% owned by Navios and 49% by the Japanese company.

Meanwhile, New York-listed Navios sank to a first quarter net loss of $10.16m as against a profit of $9.46m. Revenue during the quarter declined to $133.84m compared to $152.01m.

The sharp drop in earnings was due mainly to high operating expenses and amortization for deferred drydock and special survey costs.

“We believe we have built two competitive advantages; economies of scale and a superior reputation. We have achieved economies of scale through the size of our organisation and fleet,” said Angeliki Frangou, chairman and ceo of Navios.

“As a result, we are becoming a preferred commercial partner within the industry and recently we were able to enter into two strategic partnerships,” she said.

In April, Athens-based Navios had entered into a partnership HSH Nordbank to acquire 10 ships comprising of five product tankers and five container vessels from the bank's debtors, for a sum of $130m in cash.

Posted 22 May 2013

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Lee Hong Liang

Asia Correspondent

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