Dry bulk shipper STX Pan Ocean has placed an order today for two Capesize bulk carriers from Hanjin Heavy Industries.
The vessels, due for delivery by the end of 2016, are being built to ship coal on long-term contracts for power generation purposes according to the exchange filing.
This new order adds KRW 103,697,340,000 (USD $97.4 million) to Hanjin Heavy Industries’ backlog.
Although not specifically mentioned in the exchange filing, this newbuild order is quite likely linked to STX Pan Ocean’s 18-year contract to support the delivery of coal to five power generation subsidiaries of the Korea Electric Power Corp., including Korea Midland Power and Korean Southern Power. This agreement was announced in February 2013.
The other shipping firms that are parties to this contract include Hyundai Merchant Marine, Hanjin Shipbuilding and SK Shipbuilding.
STX Pan Ocean is expected to gain 500 billion won in sales from the long-term delivery of coal import for the next 18 years from the beginning of delivery operations in 2016 and 2018.
“The four shipping companies will soon place nine bulk carrier-building orders with local shipbuilders, designed to deliver coal imports,” an official from the Ministry of Knowledge Economy said in February.