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.