[080411.EN.SEA] Seaspan, Carlyle, Tiger Tie Up In US$5 Billion Ship Buying Deal

SHIPOWNER Seaspan has announced its will set up a joint venture with the Carlyle Group, the world's second largest private-equity firm, and Tiger Group Investments to buy US$5 billion worth of box ships, tankers and bulkers, reported Bloomberg.

The venture, named Greater China Intermodal Investments LLC, will initially possess $900 million in capital to acquire containerships, which will be run by Vancouver-based Seaspan's senior managers Gerry Wang and Graham Porter, said American Shipper.

The Wall Street Journal reported that China has placed the biggest private-sector shipping order, buying 50 - 100 new vessels, under a deal financed by a Carlyle-led consortium with a total value between $5 billion and $10 billion.

"The company will focus on bringing together Chinese shipbuilders, lenders and state-owned companies to support China's desire to increase the amount of cargo it controls," said Carlyle in a statement, reported Newark's Journal of Commerce.

Said Seaspan CEO Gerry Wang: "There is increasing desire among Chinese state-owned entities to control the ships that transport their goods around the world. We are confident that our long-standing relationships among the world's shipbuilders, charterers and financiers, particularly in the PRC [People's Republic of China], will allow us to continue to successfully execute our growth model."

He believed the new venture can help Seaspan expand its fleet through realising volume discounts for newbuilding orders, negotiating with shipyards for design enhancements and gaining more favourable ship financing.

Under an agreement with Carlyle, Seaspan will have a right of first refusal and of first order on any containership purchase proposal.

Source : HKSG, 15.03.11.