Chinese boxship operator SITC International Holdings is expanding its owned fleet with the acquisition of five secondhand ships and two new units under construction from a company associated with its chairman, Yang Shaopeng.
The Hong Kong-listed shipowner has sealed a deal with SITC Investment to take over five of its shipowning entities and one that owns 700 containers for $39.7m together with loans of $21.1 million in aggregate.
SITC Investment, incorporated in the British Virgin Islands, is indirectly owned by Qingdao SITC in China and controlled by Shaopeng’s family. The deal includes Danang Shipping with one 2000-built 1,032 teu vessel, the 2002-built HF Spirit and 2008-built 1,049 teu HF Fortune, HF Lucky and HF Wealth.
A separate deal arranged with SITC Investment will see the company novate and transfer its rights to two 1,800 teu boxships under construction at Huanghai Shipbuilding to SITC subsidiary SITC Shipowning Group for $18.4m.
After the acquisition is completed, SITC Shipowning will own all the rights to the two ships and be responsible for paying the balance of the construction fees to the shipyard of about $41.9m.
SITC pointed out in a filing that the company has been leasing these ships and containers to meet its operational needs and that the acquisition will enable it to reduce the number of connected transactions in its ordinary course of business.
“By operating its own fleet of vessels and shipping containers, the Group aims to streamline its shipping operation, reduce reliance on related parties, and enhance its operational efficiency and resource utilisation. Furthermore, vessel prices have experienced swift decline following the covid pandemic, which presents an opportunity for the Group to optimise its fleet structure and secure a long-term cost-competitive position,” SITC said.
According to Alphaliner, the intra-Asia carrier ranks 13th in the global container shipping enterprises with around 100 vessels, including 89 self-owned.