Essar Shipping flares up on plans of fleet expansion

MUMBAI: Shares of Essar Shipping were locked at 10 per cent upper circuit on reports that its controlling company Essar Shipping & Logistics, has signed a deal to build six bulk carrier at STX (Dalian) Shipbuilding in China. The estimated cost of each vessel is $65 million, making it a $390-million deal.

The fresh order involves building six mini-capsize bulk carriers of 103,664 deadweight tonnage each, with an option to acquire three more of such vessels. The ships are expected to be delivered between July 2011 and January 2012.

The company has a total fleet of 28 vessels of 1.5 million DWT. This comprises bulk carriers, capsize vessels, crude carriers, very large crude carrier, tugs, product tankers and dredgers.

Essar Shipping was at Rs 103.65, up Rs 9.05 on volume of 55,21,256 shares against two-week average of 3,52,552 shares. The stock has appreciated 60.32 per cent in past one week and has surged 157.84 per cent in past one month.