Chelsea enters into agreement with Japanese shipbuilder

May 29, 2019

Chelsea Logistics and Infrastructure Holdings Corp. on Wednesday said it entered into a strategic agreement with Kumiai Senpaku Co. Ltd., one of the largest independent shipping companies in Japan to finance construction of the new passenger vessel of its wholly-owned subsidiary, Starlite Ferries, Inc..

“Our new strategic partnership with Kumiai underscores our long standing and ongoing commitment to shipping modernization, becoming the country’s prime mover of vital goods, cargoes and people,” Chryss Alfonsus Damuy, Chelsea president and chief executive said.

The holding company of the shipping and logistics arm business segments of the Udenna Group of Companies said the 98-meter passenger ferry with Hull S-1191 will be built by Kegoya Dock Co.Ltd. at its shipyard in Hiroshima. It will be delivered in April 2020.

The S-1191 vessel will be the subject of a 20-year Bareboat Charter Agreement between Kumiai’s subsidiary, Southern Pacific Holding Corp. as owner and Starlite Ferries Inc., as charterer.

The Bareboat Charter Agreement comes with an irrevocable obligation for Starlite Ferries to purchase the vessel at the end of the 20-year Charter Period.

On May 26 this year, Southern Pacific Holdings Corp. and Starlite Ferries Inc., signed the Bareboat Charter Party Agreement of the passenger ferry in Tokyo.

On the same day, Chelsea Logistics and Infrastructure Holdings Corp. signed the Letter of Guarantee in favor of Southern Pacific Holdings Corp. in connection with the obligations and undertakings of Starlite Ferries, Inc. under the Bareboat Charter Party Agreement.

Kumiai Senpaku Co. Ltd. previously financed the acquisition by Trans-Asia Shipping Lines, Incorporated, also a wholly-owned subsidiary of Chelsea, of a 67-meter passenger ferry with Hull No. S-1185 subsequently named “Trans-Asia 19” which arrived in the Philippines in November 2018.

Earlier, Chelsea Logistics said it will acquire six additional vessels for $100 million over the next two to three years.

CLC operates 16 tankers, 22 RoPax, 11 cargo vessels and 14 tugboats through Chelsea Shipping, Starlite Ferries, Trans-Asia Shipping Lines Inc. and Fortis Tugs. Investor and partner 2GO Group Inc., meanwhile, operates eight RoPax vessels, five cargo vessels and 11 fast craft. DMS