Western Bulk Reenters Ship Ownership with New Acquisition
Norwegian dry bulk operator Western Bulk has announced its return to ship ownership, collaborating with domestic partners to acquire a modern kamsarmax bulker. This strategic move involves the purchase of the CSSC Shi Jia Zhuang, which will be renamed Western Egda. The deal includes a 22% stake for Western Bulk and is set to finalize next week.
Details of the Acquisition
The vessel, built in 2020 at Tianjin Xingang, has a deadweight tonnage of 82,000 and has recently completed its five-year special survey. Under this new agreement, Western Bulk will take on the commercial and business management of Western Egda. This integration allows the ship to utilize Western Bulk’s extensive global trading platform, enhancing its access to a wide network of customers and suppliers while benefiting from in-house operational support.
Chief executive Torbjørn Gjervik expressed enthusiasm about the acquisition, describing it as a significant step back into ship ownership alongside trusted partners. “We are very excited to re-enter ship ownership together with a strong group of partners. This is an area where we can add significant value through our global commercial platform,” he stated.
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This acquisition marks a shift for Western Bulk, which had been primarily focused on asset trading rather than long-term ownership in recent years. Earlier this year, the company successfully sold two 2020-built ultramax vessels after exercising purchase options, netting approximately $3 million in profits. Currently, Western Bulk operates around 110 vessels ranging from handysize to kamsarmax, fixing between 500 to 600 unique ships each year. The company’s trading data provides insights that enhance its ability to evaluate vessel performance and identify investment opportunities.
Future Growth Plans
Looking ahead, Gjervik mentioned that Western Bulk plans to expand its co-investment and commercial management activities in collaboration with like-minded partners. He encouraged interested parties to reach out for potential partnerships, highlighting the advantages of accessing Western Bulk’s robust commercial platform. This strategic approach not only reinforces the company’s market position but also fosters opportunities for growth in the competitive dry bulk sector.
