Three Chinese shipyards have signed letters of intent with Glory Maritime.
One industry source familiar with Koo’s business said Glory Maritime International Holdings has signed letters of intent (LOIs) with three shipyards in China.
“Koo has charterers in mind for these newbuildings,” he said. “A Middle East sovereign fund will be funding Koo’s newbuildings. They have been working together for some years.”
In one of the deals, Glory Maritime is said to have made a pact with Yangzijiang Shipbuilding for up to six MR product tankers. The order involves two firm vessels, plus four optional slots.
TradeWinds is told that Glory Maritime is paying about $33m apiece for the firm newbuildings and is scheduled to take delivery of the first vessel in the third quarter of 2020 and the second in the following quarter. The tankers will meet the IMO’s Tier II emissions standards.
“Koo is still considering if he should install scrubbers on them,” said the source. “These newbuildings are so-called ‘resale units’ as they were originally booked by Yangzijiang Shipping, the shipowning division of the Singapore-listed shipyard.”
Glory Maritime has also signed an LOI with Zhoushan-based Jinhai Intelligent Manufacturing for a VLCC. The 300,000-dwt crude tanker, which will be fitted with scrubbers, is said to be costing about $77m.
“This VLCC was originally ordered by GC Tankers, a unit of China’s HNA Group,” the industry player said. “The newbuilding is about 50% built and is slated for November 2020 delivery.”
Glory Maritime is lining up a charter contract for the VLCC to an unnamed Chinese oil company.
On the bulker front, Glory Maritime has signed a contract with Shandong-based Penglai Zhongbai Jinglu Ship Industry for four firm kamsarmax bulker newbuildings. The deal does not include any options.
“Glory Maritime has already lined up charter contracts for these kamsarmaxes,” the industry player said.
The scrubber-fitted, IMO Tier III bulker newbuildings are said to be costing Glory Maritime about $28m apiece. They are scheduled for 2021 delivery.
Last summer, Glory Maritime made headlines when it was reported to have commissioned state-owned Wuhu Shipyard to build up to 10 ultramax bulker newbuildings for about $24m each. The deal was for four firm ships plus six options.
However, the newbuilding contract did not materialise as new restrictions set by the state did not allow Wuhu to build vessels larger than 55,000 dwt, in order to clear the Nanjing Yangtze River Bridge.
China delivers blow to John Koo’s bulker order at Wuhu
Koo was reported to be looking to replace the 63,500-dwt bulker order at Wuhu with MR tanker newbuildings. But it appears he has now gone to Yangzijiang Shipbuilding for the product carriers.
Koo initially worked at Valles Steamship with his elder brother, David. But in 2002, he left to set up Orient Steamship 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 his last vessel, the 107,000-dwt tanker Diamond Queen (built 1998).
Glory Maritime is said to own five aframax tankers that were built five to six years ago with long-term contracts lasting 10 years. However, they are not listed in major shipping databases.