Odfjell Sells Share in China Terminal
18.05.2020 - Odfjell Terminals (China), or OTC, part of Norwegian shipping and storage group Odfjell, has sold its 50% stake in its Dalian terminal in China to Dutch group VTTI Terminals for $59 million cash. The other 50% stake remains with the Port of Dalian. The move is part of Odfjell’s restructuring program.
OTC is indirectly owned 51% by Odfjell and 49% by US private equity firm Lindsay Goldberg.
VTTI said the acquisition marks its first step into China while also broadening its chemicals storage portfolio. The facility at Dalian’s new port in Xingang is fully dedicated to chemical products and offers 51 mild steel and stainless steel tanks with a total storage capacity of nearly 120,000m3, along with four jetties and four berths.
“The sale of Odfjell Terminals (Dalian) represents another step in the restructuring of our terminal portfolio and is in line with our strategy to focus on chemical terminals where we can harvest synergies with Odfjell Tankers or have another angle for further value creation by Odfjell,” said Odfjell CEO Kristian Mørch.
In summer 2019, Odfjell sold a 55% stake in the Jiangyin terminal in China to Yangzijiang Shipbuilding (Holdings) for about $46 million.
Odjfell takes delivery of new tanker
In separate, news, the Oslo-based group took delivery on Apr. 22 of the Bow Optima, the fourth and final of its newbuild order with China’s Hudong shipyard. The vessel is a 49,000 dwt stainless steel chemical tanker, comprising 33 tanks with a total cargo volume of about 55,000m3.
Odfjell said the tanker and its three sister ships are four of the world’s largest chemical tankers. The others are named Bow Orion, Bow Olympus and Bow Odyssey.
“Bow Optima and her sister ships represent a big leap forward when it comes to optimizing vessels for more energy-efficient and eco-friendly shipping,” Mørch said. “These vessels are tailor-made for the worldwide chemical tanker market and add highly sophisticated tonnage to our most important trades. The first vessel entered into trade eight months ago, and the experiences so far have met all our ambitious targets.”
With regard to this final delivery, Odfjell noted that Covid-19 restrictions had led to “unforeseen challenges” during the final phase of Bow Optima’s construction. This means that the captain now has to wait until the ship’s crew is allowed to join him. In the meantime, the vessel will remain at the Hudong Shipyard in Shanghai.
