Macquarie Research analyst Jon Windham has earmarked Sinotrans Shipping as being one of the few Chinese state-owned companies that would be able to take advantage of the financial crisis by taking on cancelled newbuild orders.
Mr Windham estimated that over half of the vessels on order at shipyards in China from Europe could be at risk at cancellation, and that Sinotrans and China Shipping Development could be some of the companies capable of acquiring the vessels. He said that doing so what help facilitate the Chinese central government's stimulus package for the yards.
Mr Windham said that Sinotrans in particular had US$1.4 billion worth of reserves, with committed capital expenditure of US$388 million up till 2011 for the expansion of its dry bulk fleet. According to Mr Windham, Sinotrans will increase its fleet by 64 percent, or 1.2 million DWT.
He continued to say that Sinotrans would likely make further acquisition, dipping both into the newbuild and second hand markets.
