ASL acquires Japanese-built vessel, to pursue further fleet growth

Apeejay Shipping Ltd (ASL) on Friday announced the acquisition of a Japanese-built vessel with a deadweight capacity of 76,812 MT.

The vessel adds significant strength to the Kolkata-based company’s fleet, now totalling 10 vessels and boasting of a combined deadweight tonnage (dwt) of 671,332 MT.

The cost and financing details of the acquisition were not shared.

“We will continue to look for and acquire more ships and focus on expansion and growth,” said Karan Paul, Chairman of the Apeejay Surendra Group.

Officials shared that ASL, the third-largest ship owner in India, aims to achieve a capacity of one million tonnes in the future.

The announcement of this acquisition coincides with the celebration of ASL’s 75th year of existence.

In 2022, the Union government announced a range of measures to enhance the tonnage of Indian shipping companies, including subsidies.

Meanwhile, an ICRA credit report of July 2022, highlighted ASL’s track record, noting its previous acquisitions of three second-hand ships in FY2018.

The report underlined ASL’s predominant focus on the dry-bulk segment, with coal constituting a significant portion of its transported goods.

However, it also drew attention to the relatively higher client concentration risk faced by the company.