Changhang Phoenix To Purchase Two 50,000-ton Coastal Bulk Carriers

- Mar 21, 2018-

On March 20, Changhang Phoenix announced its plan to purchase two 50000-ton coastal bulk carriers.

According to the announcement, in order to effectively solve the problem of the company's domestic waterway transportation business license qualifications and to alleviate the company's lack of transportation capacity in stages, the company plans to purchase two 50,000-ton-class coastal bulk carriers at market prices. The specific name of the vessel is not determined and it is within 18 years of age. It is expected to be completed in the first half of 2018.

The company stated that the purchase of ships can effectively solve the problem of the domestic waterway transportation business license qualifications faced by the company. In recent years, due to the mandatory scrapping of self-owned ships, the company currently has no specific ship that can bid for a waterway transportation business license in accordance with the requirements of the “Regulations for the Administration of Domestic Water Transportation” and will not be able to pass the annual review of waterway transport qualification in 2018.

At the same time, the acquisition of ships will help the company to consolidate existing markets and increase profitability. Since the reorganization of the company in 2013, the capacity of its own vessels has continued to decrease from nearly 750,000 tons in 2013 to the current 150,000 tons. The company relies on a large number of out-of-tenan vessels to meet the normal production and operation requirements, and purchases large-tonnage seagoing vessels. Effectively consolidate the existing transportation market, meet the needs of core customers, and improve the company's profitability.