Norway's Arriva Shipping has made further progress on lowering its average fleet age with the addition of a vessel from Irish owner Arklow Shipping.
The company, which is controlled by the Matre family, said it agreed to buy the 7,600-dwt general cargoship Arklow Brook (built 2011) for an undisclosed price.
The Dutch-built vessel has the highest ice class rating, recently completed a classification society renewal and has installed a ballast water treatment system.
VesselsValue assesses the coaster as being worth $6m and the Arriva fleet at $26m before this deal.
But Arriva co-owner and managing director Sindre Matre suggested this was too low.
Matre told TradeWinds that market forces over the last year — and in particular the last few months — have seen the value of such ships "increase significantly".
"The availability of suitable tonnage for us is unfortunately very limited," he said.
The Arklow Brook will be the biggest ship in the operational fleet of eight owned vessels, which still includes a carrier built in 1971 and three in the 1990s. There are also seven chartered-in carriers.
The newest unit was delivered in 2009.
However, the Nor Viking — a newbuilding of 8,500 dwt — is due to be delivered from Dayang Offshore in China in January next year.
Vessel to be upgraded
Arriva will get its hands on Arklow Brook in the middle of July, when it will change the name to Norheim and rebuild the ship into a self-unloader.
Operations with the upgraded unit will begin in September. However, this will cut the capacity to 7,200 dwt.
"The acquisition of Arklow Brook is in line with our ambitions for fleet renewal and represents our values of sustainability," Sindre said.
"It is essential to be a player that contributes to a shipping industry that is both efficient for customers and at the same time works for more environmentally friendly transport."
The Chinese newbuilding is a hybrid ship that will reduce emissions by 30%.
Arriva also held an option for a second vessel, but it has let the option lapse.
It is believed that the hybrid ship is costing between $13m and $15m.
Crucial steps need to be taken
"In addition to our need for increased capacity, the company will in the next few years, together with the rest of the industry, take crucial steps to reduce its climate emissions," Matre pledged.
"In connection with Norway's prominent role on the road to the green shift, it is vital that we pull the load."
Arriva operates mainly in northern Europe, has about 130 employees, and offices in Olensvag, Stavanger and Gdansk.
The company generated a record result in 2020, despite the operational upheavals caused by the Covid-19 pandemic.
Pre-tax profit came in at NOK 14m ($1.7m), compared to NOK 5m in 2019.
