Pac Basin continues push into ro-ro

Hong Kong: Pacific Basin has signed binding purchase option contracts with the Grimaldi Group in respect of two roll on roll off cargo vessels to be built at Hyundai Mipo for delivery in the second and fourth quarters of 2010. If the purchase options are exercised, as the company intends, the total consideration will be approximately $174m.

Addition of these two further vessels underlines Pac Basin's desire to diversify from dry bulk into roll on roll off, a sector where it feels there are good demand prospects on account of an ageing world fleet (42% of vessels are aged 25 years or over), a small orderbook (comprising less than 20% of the existing fleet) and a requirement for premium service levels. These are all features that originally attracted it to its mainstay handysize bulker business, the company points out. It already has four 190mtr ro-ro vessels (design pictured) on order at Odense yard in Denmark for delivery from August 2009 through February 2011.  [10.07.08]