Pan Ocean inks long-term voyage contract for iron ore, investing 483b won in 6 new carriers

Pan Ocean Co has entered into a 27-year contract of affreightment with Vale International SA for the transportation of Brazilian iron ore at estimated total sales of approximately US$1.8 billion (S$2.4 billion).
Pan Ocean Co has entered into a 27-year contract of affreightment with Vale International SA for the transportation of Brazilian iron ore at estimated total sales of approximately US$1.8 billion (S$2.4 billion).PHOTO: BLOOMBERG

SINGAPORE - Pan Ocean Co said on Thursday (Nov 30) it has entered into a 27-year contract of affreightment (COA) with Vale International SA for the transportation of Brazilian iron ore at estimated total sales of approximately US$1.8 billion (S$2.4 billion).

The contract commences from the first quarter of 2020. "The main objective of the company for entering into this COA is to secure a stabilised source of revenue and profit," said Pan Ocean.

In a separate announcement, the company said it is investing in six very large ore carriers in order to secure vessels for long-term cargo contracts. The shipbuilding contracts are worth 483.18 billion won (S$600 million), with the investment period from December 2019 to September 2021.