South Korea's Pan Ocean has announced an investment of KRW228 billion ($154 million) to build two new Newcastlemax vessels. In a stock exchange filing, the company stated it aims to, "enhance its competitiveness in the dry bulk cargo transportation business," through this investment.
The shipbuilding contract is scheduled to conclude by March 27, 2031, upon the delivery of the vessels. The shipbuilder was not disclosed in the announcement.
Pan Ocean remarked that it chose to exercise an option to order two additional ships, a provision included in a previous investment decision disclosed on February 11.
To ensure long-term flexibility, the company plans for the vessels to be designed to be convertible into ships capable of operating on LNG or ammonia fuel.
The final determination regarding the use of "alternative fuels" will be made based on future market conditions, according to the voluntary disclosure.
While the total investment represents 4.03 per cent of the company's equity, the final costs remain subject to change due to exchange rate fluctuations and shipbuilding schedules.