Nov 15, 2004

Zim in $732 million expansion

The Jerusalem Post reports that Zim Integrated Shipping Services Ltd. and its parent company Israel Corporation have outlined plans for acquisition of 12 cargo vessels in a $732 million deal.

Israel Corp. (controlled by the Ofer brothers) is the purchaser of the ships, and their transfer to Zim's control is subject to approval by its board..

Twelve box ships are involved. Eight 4,250 TEU vessels have been purchased, and are currently under construction in China for delivery between March 2006 and January 2008. Two of the ships will be wholly owned by Zim, while four will be equally owned by Zim and the Ofer group. The additional two vessels have been leased from London-based Zodiac Maritime (an Ofer group subsidiary) for 10 years. Cost of leasing totals $23,000 per day.

The Jerusalem Post says Zim has also acquired four 6.350 TEU postpanamax ships for its Europe Asia routes. They are being build in Japan, and will be delivered between the first half of 2008 and first half of 2009. Two are wholly owned by Zim, and two will be leased from Zodiac.0.

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