Hong Kong-listed SITC International Holdings is expanding its owned fleet in a deal with chairman and major shareholder Yang Shaopeng.
The company is paying $58m to acquire five feeder vessels and two newbuildings from companies owned by Yang.
The first transaction will see five ships and 500 containers move to SITC for $39.8m, the company said.
Three were built in 2008: the 1,049-teu HF Fortune, HF Lucky and HF Wealth.
The other two are 1,032-teu ships: the Danang Shipping (built 2000) and the HF Spirit (built 2002).
The two 1,800-teu newbuildings at Huanghai Shipbuilding are costing $18.4m. They are due for delivery in 2024.
SITC has been chartering the ships and boxes from Yang’s companies.
“The acquisitions will enable the group to expand its self-owned fleet, as well as owning its own shipping containers to carry out its shipping operation, thereby reducing the number of connected transactions in its ordinary course of business,” the shipowner said.
“By operating its own fleet of vessels and shipping containers, the group aims to streamline its shipping operation, reduce reliance on related parties, and enhance its operational efficiency and resource utilisation,” SITC added.
The company also said vessel prices have experienced a swift decline following the Covid-19 pandemic.
This presents an opportunity for the group to “optimise its fleet structure and secure a long-term cost-competitive position in the shipping industry”.
The company controls 94 vessels and has a further 15 on order.
