Singapore Corporate News - 13 Sep 2007

Rickmers signs deal to buy 4 new vessels

RICKMERS Maritime, which was floated on the Singapore Exchange (SGX) mainboard in May, has set sail to more than double its contracted fleet capacity.

The business trust, which owns and operates containerships, said yesterday that it has signed a memorandum of understanding (MOU) to purchase four new 4,250 TEU (twenty-foot equivalent unit) vessels at US$69 million each.

This acquisition, together with a recently announced acquisition of four 13,100 TEU container vessels, will propel Rickmers to a contracted fleet capacity of 110,310 TEUs, up from 40,910 TEU.

The latest four vessels, to be acquired from Polaris Shipmanagement Company, are scheduled for delivery between February and December 2009 from the Jiangsu shipping facilities of Yangzijiang Shipbuilding (Holdings), also an SGX mainboard company.

Each vessel, to be paid on delivery, will commence service upon delivery with seven-year, fixed rate time charters to Hanjin Shipping in Seoul at US$25,950 per day.

Hanjin, Korea's largest carrier that operates about 60 liner and tramper services transporting more than 100 million tonnes of cargo annually worldwide, also has the option to extend the charter period for another three years at a higher rate of US$27,950 per day.

Each of the new vessels is expected to contribute about US$9 million in revenue and US$7 million in Ebitda (earnings, before interest, tax, depreciation and amortisation) per annum in the initial years, which should add to distributable cash flow, said Quah Ban Huat, CFO of Rickmers' trustee-manager.

Financing is being arranged, he said.

The four vessels are among the nine 4,250 TEU vessels that Rickmers said, during its IPO, that it would have the right of first offer to purchase.

Spaceport plan still on the cards, says consortium

DESPITE delays to its plan, a consortium that is trying to build a spaceport in Singapore says it is optimistic about the project.

A spokesman for the Singapore consortium, Mr Nick Marrett, founder of entertainment company Octtane, said two-thirds of the US$115 million (S$176 million) needed for the Singapore spaceport has been secured.

The local consortium, which includes six Singapore companies - one of which is Octtane - and Virginia-based Space Adventures, announced the plans for Singapore's spaceport with great fanfare in February last year.

The plan was to attract well-heeled adventurers who are willing to spend an estimated US$100,000 for tourist flights into space.