Our client, the Group of companies, was founded in 2007 with the goal of consolidating a business that provides a range of services for the transshipment and storage of grain cargo, ship repair and engineering, as well as a wide range of logistics and forwarding services.
The logistics activity is represented on the market by the following services:
- chartering and operational support of contract implementation;
- technical management;
- maritime safety;
- crewing services;
- ships’ agency services.
The company has positive expert experience in operating a river-marine vessel (DWT 6200) on the market of sea shipping from the shallow ports of the Sea of Azov. Over the years, a complete and high-quality understanding of the market and its trends has been formed. Partnerships with the main charterers from this region have been built due to the reputation of a reliable shipowner who ensures the transportation of goods on time and without loss of quality.
As a part of the business development and expansion of the Company's fleet, the appropriate class of ship was selected that meets the following criteria and has such advantages:
- maximum carrying capacity (DWT 9400) while maintaining shallow draft (5.35 m), which complies with the depths of the shallow ports of the Sea of Azov;
- strength corresponding to Ice1 ice class, which allows you to work in ice conditions;
- high class automation, modern equipment to reduce the number of crew, minimize residential buildup and sea guard;
- versatility of bunkering and fuel efficiency;
- compliance with all the necessary International Marine Organization rules, conventions and standards, taking into account relevant additions and amendments to them;
- multi-purpose dry cargo vessel with cargo holds, designed primarily for the transport of bulk cargo and grain, which can also carry TEU, FEU in holds, boxed sawn wood products, timber, scrap metal, steel and rolled loads, outsized, heavy and dangerous cargo.
This project is suitable for the transportation of almost all the types of goods exported from the studied region in the Azov, Black, Caspian, Baltic and Mediterranean Seas.
On the market of river-marine vessels, the design ship is able to earn the highest income by competing with the existing fleet operating on this market.
The company has a positive credit history, at the moment there are no debt obligations to banks. Since 2014, has been successfully working with Banque Internationale a Luxembourg S.A.
Financial audit for 2017 was conducted according to international standards in August 2018 (auditor – Kreston GCG).
The project stipulates for financing the construction of one vessel.
The cost of building a design vessel is $ 14 million.
Terms and conditions of attracting financing:
- loan maturity – 15 years.
- grace period – 1 year.
- interest rate – 4.5%.
- interest in the project – 20%.
The main economic indicators of the project payback for one vessel:
- Project payback period (PBP) – 9 years.
- The internal rate of return (IRR) is 16%.
- Net present value (NPV) is $ 9.7 million.
- Profitability index (IP) – 70%.
The cash flow forecast demonstrates that project vessels can pay all the project costs, OPEX and CAPEX for 9 years, as well as repay the loan and pay the interest rate to the lender.
