Monday, September 21, 2009

Bulk Carrier in Negotiations for Massive Contract

STX Pan Ocean sees share price rise
Shipping News Feature

SEOUL- Shares in South Korean dry bulk carrier STX Pan Ocean have risen by 14 percent on the news that the company is in negotiations with Brazilian mining company Vale over a long-term iron ore shipping contract.

A spokesman for STX Group said that: "(STX Pan Ocean) is in talks with Vale and expects them to be concluded by Wednesday."

On press speculation that the deal concerned a 25-year contract worth up to $5 billion the spokesman added that: "The value of the deal is still being finalised."

If true, and the contract is as lucrative as thought, then it puts STX Pan Ocean, currently the world's No. 5 dry bulk carrier, in a very strong position against its rival lines.

(Pic: Bulk Carrier ‘New Emerald’ © STX Pan Ocean)