Rickmers – BT

Rickmers inks US$1.35b deal

Purchase of 13 new container ships will triple contracted fleet capacity

RICKMERS Maritime has moved a step closer to acquiring 13 new vessels that are expected to treble its contracted fleet capacity when fully delivered.

The company, which owns and operates container ships, has inked a memorandum of agreement (MOA) to buy the 13 new container ships from Polaris Ship Management Company for US$1.35 billion.

This follows the preliminary agreements that were signed between the two companies last year. The ships, slated for delivery between 2008 and 2010, will take the firm’s fleet size to 23 and increase its contracted fleet capacity by over 220 per cent.

Five 4,250 TEU (twenty-foot equivalent unit) vessels from this acquisition will be chartered to Mitsui OSK Lines, while four others of similar capacity will be contracted to South Korea’s Hanjin Shipping. Four 13,100 TEU vessels, among the largest in the world, will be chartered to AP Moller-Maersk. The tenure of these fixed-rate charters range from seven to 10 years.

‘I am confident that our investors will share our excitement with this 222 per cent growth pipeline, which includes four of the largest container ships ever built,’ said Thomas Hansen, CEO of Rickers Trust Management (RTM), which manages Rickmers Maritime. ‘The MOA signifies our commitment in growing the trust and we will continue to keep a lookout for other viable acquisitions that fit our investment mandate and allow us to deliver positive returns to our unit holders.’

The ships are set to boost Rickmers’ distributable cash flow once they are delivered and in operation. ‘They are expected to increase Rickmers Maritime’s aggregate contracted revenue in excess of US$2.1 billion for the years up to 2010,’ said Quah Ban Huat, Rickmers Maritime chief financial officer.

The purchase of the vessels is still subject to the approval of unit-holders.