PST – BT

PST’s two new vessels to boost capacity 61% in ’09

PACIFIC Shipping Trust (PST) said yesterday that its proposed US$136.2 million acquisition of two new vessels will significantly raise its revenue and total fleet capacity in 2009.

Giving more details about the acquisition in a filing to the Singapore Exchange, PST (Singapore’s first publicly listed business trust) said revenue will increase by 54 per cent to about US$53 million per annum and is expected to be yield accretive once the ships are in operation. PST’s fleet capacity will increase by 61 per cent to 22,364 TEU (20ft containers) from 13,864 TEU previously.

The acquisition was first announced in May. The 4,250 TEU vessels cost approximately US$68.1 million each and are chartered to Chilean operator Compania SudAmericana de Vapores (CSAV), the largest liner shipping company in South America. The two ships are being constructed by Dalian Shipbuilding Industry Co in China. They are scheduled for delivery in November and December 2008.

The acquisition is PST’s first since it went public in May 2006.

After the acquisition, the total number of vessels under its portfolio will increase from eight to 10 and trust expenses per vessel could potentially be lower due to greater economies of scale, PST said.

The new vessels will be chartered to CSAV for US$26,000 per day for the first two years and US$25,500 per day for the remaining three years.