Pingtan orders 25 new fishing vessels

29 May 2014
Pingtan has ordered 25 new fishing vessels. Credit: Pingtan Marine Enterprise Ltd

Pingtan has ordered 25 new fishing vessels. Credit: Pingtan Marine Enterprise Ltd

China based fishing company, Pingtan Marine Enterprise Ltd., has recently ordered 25 newly-built fishing vessels as a continuation of its fleet replacement plan.

The vessels have received ratifications from the Ministry of Agriculture of the People's Republic of China (MOA), which ensures that the licenses to fish in foreign waters will be transferred to the new vessels.

The company will retire 25 of its older existing fishing vessels, and the replaced fishing vessels will use new vessel names once put into operations.

The new vessels are expected to be built in China, and will be delivered to the Company within next 18 to 24 months. At full operation, each vessel is capable of harvesting 900 to 1000 tons of approximately 30 types of species of fish from the Indian and Indonesia Ocean.

Pingtan will finance this fleet replacement plan by utilising one of its three bank facilities totalling RMB393.62m (approximately $63.31m) with The Export-Import Bank of China Fujian Branch and China Development Bank Fujian Branch, which both have a long-standing relationship with the company, or its credit lines with China MinSheng Bank Fujian Branch, China Development Bank Fujian Branch, and The Export-Import Bank of China Fujian Branch which total in the aggregate RMB707.7m (approximately $113.7m).

Pingtan's chairman and CEO, Xinrong Zhuo, stated, "We look forward to continuing to strengthen our fleet. We feel it is important to continue reinvesting in our company by deliberately replacing older vessels with newly built assets without disruption to our fishing operations. We feel this is a benefit resulting from having access to capital and operational leverage which allows us to reinvigorate our fleet as necessary. We are also pleased to complete these financings with highly-regarded banking establishments. These facilities provide Pingtan with a greater level of financial flexibility as we move forward in our plans to expand our fishing enterprise."

All of the 25 vessels to be retired are trawlers that fish in either Indian on Indonesian fishing areas.

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