You are here

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

PAN Ocean Co said on Thursday it has entered into a 27-year contract of affreigtment (COA) with Vale International SA for the transportation of Brazilian iron ore at estimated total sales of approximately US$1.8 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 stabilized 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 Korean Won (around S$600 million), with the investment period from Dec 2019 to Sept 2021.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes