Fleet Expansion and Long Term Contract

Bocimar has expanded its newbuilding programme with the acquisition of two newbuilding Capesize vessels.

The first vessel has been ordered from Imabari (Japan). The purchase price of this 180,000 dwt unit amounts to USD 108 million and delivery is expected to take place in the course of the first quarter 2010. The second vessel – 177,000 dwt – has been ordered from the SWS yard in China. The purchase price amounts to USD 115.5 million with delivery scheduled for December 2008/January 2009.

Recently Bocimar reached an agreement in principle with the Australian mining group Fortescue Metals Group (FMG) for the transport of iron ore from Australia to China. The agreement includes the use of two vessels, one for a period of 10 years and one for a period of 5 years, and covers the transport of approximately 30 million tons of iron ore.