CMA CGM, Adani Team Up on Mundra Ports’ New Terminal

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  • As Diana’s Board Clears Purchase of Three Vessels

CMA Terminals (CMAT), a part of French shipping giant CMA CGM, and India’s port developer Adani Ports and Special Economic Zone Limited (APSEZ) have signed an agreement to jointly operate container terminal 4 at Mundra Port for 15 years.

In July 2014, APSEZ and CMAT signed a Joint Venture agreement and have now operationalised the new container terminal named Adani CMA Mundra Terminal Private Limited (ACMTPL). The parties informed that the deal has an option to be extended twice for 10 more years.

The partners have completed the CT4 project three months ahead of schedule making Mundra Port the largest container-handling port in the country. The port was already the country’s number one multi-purpose port facility.

As the only container terminal on the west coast of India where the world’s largest container ships can call, CT4 has four units of 65 tonnes capacity of rail mounted quay cranes capable of handling 18,000 TEU vessels and super post and ultra large container vessels (ULCV) and an annual capacity of 1.3 million TEUs, CMA CGM informed.

“This is a notable milestone for us, as with the commissioning of this terminal, Mundra port will become India’s largest container-handling port. This strategic partnership with CMA CGM in the Container Terminals business brings significant value to Mundra port,” Karan Adani, CEO, APSEZ,said.

In the meantime, board of directors of the Greek owner of dry bulk vessels Diana Shipping has approved the acquisition of three vessels, the company said.

The approval follows closing of the company’s previously announced underwritten public offering of a total of 20,125,000 common shares, par value USD 0.01 per share, at a price of USD 4 per share.

The offer includes the full exercise of the over-allotment option granted to the underwriters to purchase up to 2,625,000 additional common shares. Following this offering, the company has 106.1 million common shares outstanding, par value USD 0.01 per share.

As part of the offering, entities affiliated with Simeon Palios, the company’s Chief Executive Officer and Chairman, executive officers and certain directors, purchased an aggregate of 5,500,000 common shares at the public offering price.

The gross proceeds from the offering were USD 80.5 million, all of which is expected to be used to fund the acquisition costs of additional dry bulk vessels, including two 2013-built Post-Panamax dry bulk vessels and one 2013-built Kamsarmax bulker.

Any net proceeds from the offering not used for the vessel acquisitions will be used for general corporate purposes, the company added.

As of April 26, 2017 the company’s fleet consists of 48 dry bulk vessels, featuring a combined carrying capacity of approximately 5.7 million dwt with a weighted average age of 7.9 years.

World Maritime News

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