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West Asia Maritime signs pact with Mitsubishi

CHENNAI: West Asia Maritime Limited (WAM), a part of Dubai-based diversified business conglomerate ETA, has signed a twelve-and-half-year Bareboat Charter (BBC) with purchase option contract with Mitsubishi Corporation of Japan for chartering two Handymax (+55,000 dead weight tonnage (dwt)) bulk carriers, according to Abdul Qadir A. Rahman Buhari, Managing Director, West Asia Maritime.

Addressing a press conference here, Mr. Buhari said the two new $110 million vessels (Rs. 440 crore) were to be delivered during the third quarter of 2010 and the first quarter of 2013. He said WAM had the option to purchase the vessel from the date of delivery at a pre-determined price every quarter throughout the charter period.

A bareboat charter of a vessel is where the person who hires the vessel will have the right to use his own master and crew and pays all operating expenses.

Under the proposed deal, WAM would be getting the vessel for a long period with minimal investment and also have the purchase option.

Mr. Buhari said WAM and its subsidiaries were providing long-term contract of carrying cargo for industries such as steel, fertilizer and power.

WAM would also be taking delivery of four new stainless steel chemical tankers over the next 12-18 months.

Mr. Buhari said ETA-Ascon, a subsidiary of ETA group, was planning to enter ship-building and repairing activities.

It was scouting for land in the eastern coastal areas within Andhra Pradesh and Tamil Nadu.

He said the company had already set up a ship repair and building yard in China. In India, he wanted the yard to be closer to the cluster of yards in the South, where it would get experienced labourers.

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