Pangaea Logistics Solutions Ltd. (Pangaea) (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced Monday the expansion of its high ice class fleet niche with a new ten year contract with its customer Baffinland Iron Mines Corporation (Baffinland), and the signing of a contract to build two new post-Panamax 95,000 dwt dry bulk vessels at Guangzhou Shipyard International in China to support the new business. Pangaea holds options to build two more vessels at Guangzhou.
Ed Coll, Chief Executive Officer of Pangaea, discussed the contracts with Baffinland and the China State Shipbuilding Corporation-affiliated Guangzhou Shipyard, "We work closely with all of our customers. Our relationship with Baffinland is special because of the extra challenges presented with high arctic shipping. The cargo contract, requiring the building of at least two new vessels with Ice Class 1A classification, marks a significant step forward in our leadership in the ice class part of our business. The new ships, with a building cost of approximately $38 million each, are Pangaea's first shipbuilding contracts in China. Guangzhou Shipyard has a long history of building ships for demanding owners, and they have experience building ice class and polar class vessels for demanding service. Our ships are custom-designed for the ice trades our Nordic Bulk Carriers subsidiary has developed over the past decade."
"The new ships, to be delivered in first half of 2021, will serve: our new ten year contract with Baffinland for summer service in the Canadian Arctic; existing customers who depend on our fleet capabilities in the Baltic Sea winters; and, old and new customers wishing to use the most modern ships to utilize expanding trade routes in high northern latitudes. The new ship design is a fuel efficient one, making it competitive with non-ice class vessels when not trading in ice, and the ships will comply with all Polar Code requirements for safety and environmental demands."
Brian Penney, President & CEO of Baffinland Iron Mines Corporation, says: "We are excited about this new contract as it supports our plans for growth and extends our cooperation with the Pangaea group. At Baffinland, we have major expansion plans in place and look to significantly expand our supply chain capabilities to support those plans. Baffinland's Mary River direct ship iron ore has the highest iron content in the world and we are very excited about the marketing opportunities that these larger ships present. We are very pleased to partner with a responsible company like Pangea and Nordic Bulk Carriers who, importantly, have operating experience with quality ships in the high Arctic and are respectful of its environment."
Source: Pangaea Logistics Solutions