John Koo has re-emerged in the shipping scene with an order for up to 10 ultramax bulker newbuildings worth around $240m at a Chinese shipyard.
Well-placed shipbuilding sources said the former Orient Steamship boss’ newly formed company Glory Maritime International Holdings has contracted four firm 63,500-dwt newbuildings at Wuhu Shipyard.
The deal includes options for up to six more vessels.
Koo is travelling and was unavailable for comment as TradeWinds went to press.
One shipping market source familiar with Koo said this is the first time the Hong Kong businessman is investing in ultramaxes.
“He is going for this ship type because it is flexible to trade. Previously, Koo was involved in capesize bulk carriers and some tankers,” said the source.
“Koo finds the newbuilding deal at Wuhu to be a good deal, as he has received a good price for the vessels.”
The source described Koo’s ultramax newbuildings as eco-ships that will be built to the upcoming IMO Tier III emissions rules.
Long-term charters
TradeWinds is told that Koo is finalising long-term charter contracts of five to 10 years for the bulkers.
The identity of the charterers and the charter rates are not disclosed.
Koo is said to be paying close to $24m each for the ultramaxes. He may be able to take delivery of the first vessel at the end of 2019, with the rest delivered during the first quarter of 2020.
“Koo is ready to carry out asset play [sales] for some of the vessels if there are good offers,” said the shipping market source. “However, he is likely to keep the first few vessels with the company.”
On the tanker front, shipping sources say Koo also owns five aframax tankers that were built five to six years ago.
Off market
The names of the crude carriers are not disclosed but Koo is said to have acquired them “off market”.
“Koo’s aframax tankers are all chartered out on long-term contracts lasting 10 years,” said the shipping source.
“John Koo is keeping a low profile these days.”
John Koo initially worked at Valles Steamship with his elder brother David Koo. But in 2002 he left to set up Orient Steamship together with another brother, Philip.
At one point, the Hong Kong-based company owned a handful of capesizes, an aframax tanker and a handysize product carrier.
But John Koo was reported to have exited the shipping business in mid-2011 after selling off his last vessel, the 107,000-dwt tanker Diamond Queen (built 1998).
This article has been amended since publication to reflect that John Koo is the younger brother of David and Philip.
