GTLK Global is a relative newcomer to ship leasing, but it has big ambitions to carve a niche in the highly competitive market.

The company — the foreign leasing platform of Russia’s State Transport Leasing Co — is best known in aviation.

GTLK Global set up its maritime leasing arm in 2018, with Hong Kong picked for its headquarters last year.

DVB transport banker Tomasz Pietraszkiewicz was recruited to spearhead GTLK Asia, the official name of the Hong Kong operation.

InvestHK, a government body, was instrumental in establishing the company and helping it take its first steps, even during the pandemic, he told TradeWinds.

GTLK Global has amassed a maritime leasing portfolio of 40 vessels, including 12 newbuildings still under construction, with a combined value of $2bn.

Pietraszkiewicz acknowledged that it cannot compete with Chinese leasing companies, which can offer higher leverage.

“What we aim to be is a bridge between alternative financing for clients who are losing their relationships with shipping banks that are reducing their shipping portfolios,” he explained.

“Asian shipowners tend to be conservative and prefer relationships with banks. We become an interesting alternative for clients who have had all their credit lines with banks closed.”

GTLK Global’s strategy has switched from exclusively using its own capital to include refinancing deals with banks.

"We hope to issue bonds to secure cheaper financing in the future,” Pietraszkiewicz said.

Covid-19 led to slower growth than expected.

Pietraszkiewicz, who had joined just before coronavirus exploded into a worldwide pandemic, was marooned in Greece for several months.

That could explain why GTLK Global’s portfolio is heavily skewed towards bulk carriers owned by Cypriot-registered companies.

“The first eight months of 2020 slowed down the business, but we did some $600m to $700m worth of business during the year,” he said.

Diversified portfolio

The portfolio may be bulker-focused right now — mostly handies, with a few capes — but the company is now looking at tankers and containerships.

“We are looking at counter-cyclical growth, not at what is hot right now. Growing in the bulker space would be hard right now because asset prices went very high,” Pietraszkiewicz said.

Even though four of Norwegian shipowner Havila Kystruten’s coastal cruise ferry newbuildings are in the portfolio, Pietraszkiewicz is not interested in adding more cruise tonnage.

“It will take a long time for passenger shipping to recover,” he explained.

GTLK Global’s ideal client is an established shipowner who has been through a few market cycles and has a proven record with “assets at the right level based on projections”.

“We would avoid a client who wants to jump into a new sector. We are not interested in speculative vessels.”

He sees decarbonisation as shipping's future: “That is our consideration right now. We have to look carefully where to put our money.”

While GTLK Global is keen to get involved with future-generation sustainable ships that will eventually replace the existing global fleet, its near-term interest is in existing tonnage.

“The building of a new fleet of sustainable ships will be a gradual process that will take time. The secondhand market is good for now because you can still amortise an existing asset over 10 years,” Pietraszkiewicz said.

Targeting Asian clients

Russian leasing firm GTLK Global chose to base its ship leasing activities in Hong Kong, one of Asia's busiest maritime centres. Photo: Baycrest/Creative Commons

Despite operating its ship leasing activities out of Hong Kong, GTLK Global has yet to bring on board any Asian clients. Pietraszkiewicz blamed Covid-19.

“The problem is that we can’t travel. Shipowners like to know who they are dealing with. Because of the border closures and lockdowns, we can’t meet and see each other face to face,” he said.

“The other problem is that many shipowners have not been doing many projects during the pandemic.”

The situation is improving and he is confident that leasing deals with Asian clients will soon be transacted.

“The Hong Kong Shipowners Association opened their doors to us. They have been most welcoming, very informative. GTLK Asia cannot be more grateful for their support in providing access to the shipping community. We have been talking to many people,” he said.

“But to go on a broader tour of Asia will take some time.”