Massive Ship Order in China

Wednesday, March 16, 2011

While banks keep lending tight, a massive $5 billion order in China should mark the official turnaround of shipbuilding's fortunes, as private equity in the form of The Carlyle Group and Tiger Group Investments Partner have teamed with Seaspan Corporation, the Washington Family, Gerry Wang and Graham Porter to order more than $5 billion in new ships. Coupled with the recent announcement by Maersk and Daewoo to build a series of 10 of the world's largest containerships, it is fair to assume that the shipbuilding slump is coming to an end.

The new joint venture of global shipping and finance experts has formed a company that will work to acquire more than $5 billion in container, dry bulk, tanker vessels and other shipping assets to capitalize on increasing demand in the shipping sector. The company will commence business immediately and expects to deploy up to $900 million in equity capital during the next five years. Additional financial terms were not disclosed.
The company will primarily focus on bringing together Chinese shipbuilders, lenders and state-owned companies to support China’s desire to increase the amount of cargo it controls. The company will be led by Gerry Wang and Graham Porter, who together have more than 50 years experience in the shipping industry and finance, primarily in Asia.
Seaspan Corporation, along with Tiger’s long-term partners, the Washington Family, will solely invest in container vessels purchased by the newly-formed company.
Mr. Wang said, “There is increasing desire among Chinese state-owned entities to control the ships that transport their goods around the world. We are confident that our long-standing relationships amongst the world’s shipbuilders, charterers and financiers, particularly in the PRC, will allow us to continue to successfully execute our growth model. We are excited to partner with The Carlyle Group, whose remarkable global platform and relationship network adds an important means of value creation as we source and execute transactions.”
Greg Ledford, Managing Director and head of Carlyle’s Industrial and Transportation team, said, “This is a creative solution that combines Carlyle’s extensive transportation experience and established Asia business with the shipping expertise and leadership of Gerry and Graham.”
Yi Luo, Managing Director of Carlyle’s Asia Buyout group, said, “We believe there is a compelling opportunity to serve Asia’s continuing growth in demand for shipping capacity and are pleased to partner with Gerry and Graham, who have a track record of success in the region.”
Carlyle’s equity contribution will come from Carlyle Partners V and Carlyle Asia Partners III.
Deutsche Bank served as exclusive financial advisor to Carlyle and Tiger in establishing the joint venture. Latham & Watkins LLP served as counsel to Carlyle, and Shearman & Sterling LLP served as counsel to Tiger, in connection with the transaction.

 
 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

New Australian Navy Submarines to be Japan Built?

Australia should discuss building its next-generation fleet of submarines overseas, the Department of Defence said on Monday, a shift that could open the door to

Russian Navy Expansion Gathers Momentum

The Russian Navy celebrates its professional holiday by putting two new submarines into service and expects a new warship in the fall and several additional ships

Three Share in Navy US$96.8-M Twin-Ship Modernization Contract

The U.S. Department of Defense informs that AMSEC LLC; CDI Marine Co. LLC; and Q.E.D. Systems Inc., (all located in Virginia Beach, Virginia) are each being awarded a cost-plus-fixed-fee/cost-only,

Shipbuilding

North Sea Atlantic Joins the Technip fleet

On Saturday July 26, 2014, a ceremony was held in Bergen to officially name the latest new subsea construction vessel to join the Technip fleet, the North Sea Atlantic.

New Australian Navy Submarines to be Japan Built?

Australia should discuss building its next-generation fleet of submarines overseas, the Department of Defence said on Monday, a shift that could open the door to

Russian Navy Expansion Gathers Momentum

The Russian Navy celebrates its professional holiday by putting two new submarines into service and expects a new warship in the fall and several additional ships

Finance

Coast Guard Responds to Grounded Freighter in Lake St. Clair

The Coast Guard has responded Sunday to a 656-foot freighter that was hard aground in the downbound shipping channel of Lake St. Clair. Initial reports indicate

Leighton HY14 net margin Up to 2.7%

Leighton Holdings announced its results for the six months to 30 June 2014.   * Total revenue of $11.9 billion, up on HY13 * EBITDAiii of $843 million. Comparable EBITDAiv of $945 million,

LNG to Acquire Bear Head LNG Project in Canada for US$11 mi

Liquefied Natural Gas Limited today announced that it has significantly expanded its presence in the North American Liquefied NaturalGas (LNG) sector by signing

Vessels

North Sea Atlantic Joins the Technip fleet

On Saturday July 26, 2014, a ceremony was held in Bergen to officially name the latest new subsea construction vessel to join the Technip fleet, the North Sea Atlantic.

MOL Commended with Quality Ship Awards

MOL Commended for ‘FY2013 Best Quality Ship Award’; MOL president Koichi Muto meets with captain and chief engineer, exchanging views and working to establish a more solid safe operation system.

Farstad Offshore Vessel Squadron Chartered Out

Farstad Shipping ASA reports the following charter contracts, with a total value (including options) of approximately NOK 1.75-billion, as follows: Inpex has awarded

 
 
Maritime Contracts Maritime Security Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2679 sec (4 req/sec)