Pacific Shipping Trust takes capesize plunge

Singapore: Pacific Shipping Trust has taken a plunge into the dry bulk sector with a $123m deal for a pair of capesize bulkers. Singapore-listed PST is acquiring two 180,000 dwt bulker newbuildings from Mitsubishi Corp for $123.2m. The vessels, to be built at Hyundai Heavy Industries, are expected to be delivered in September next year. PST has chartered the two newbuildings to Jiangsu Shagang Group for 10 years at a rate of $27,000 per day for each vessel. It is the first time the Pacific International Lines sponsored Trust has ventured out of containership ownership and will boost its fleet from 12 to 14 vessels. "This marks a major milestone for the Trust with the diversification into the non-container segment, a new asset class for PST and the enlargement of our charterer base," said Teo Choo Wee, acting ceo of PST Management. "We believe that this is the right timing to enter into a dry bulk acquisition. PST has acquired the vessels at an attractive price that is substantially lower than the prices contracted in 2007 and 2008 for comparable ships," he added.