Anchor Ship Investment Co, Japan's largest ship-fund manager, said it may invest part of a planned 200 billion yen (S$3.16 billion) fund on its first dry-bulk vessels in anticipation of a rebound in Chinese iron-ore demand.
The company plans to start raising money for the new fund in September, president Hajime Tsuji said in an interview in Tokyo on Monday. The new investment vehicle is targeting an average annual return of 10 per cent a year over 10 years, he said.
Anchor Ship plans to add dry-bulk vessels even as the Baltic Dry Index, a measure of commodity-freight rates, suffers its longest decline in almost five years because of a glut of ships and resistance to signing new iron-ore contracts. The fund expects a revival as China's economic growth spurs demand for steel to make cars, buildings and railways.
'It's reasonable to assume that Chinese demand for iron ore in the medium to long term will increase,' said Ryota Himeno, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co. 'There's been a dip in demand due to negotiations on iron-ore prices but to make high-quality steel China needs to import the ore.'
The company owns 10 ships, including container vessels, very large crude carriers, a chemical tanker, a car carrier and a liquefied petroleum gas tanker, Mr Tsuji said. The ships are leased to Japanese lines, including Nippon Yusen K.K., the nation's largest shipping company by sales. The new fund may lease vessels to overseas operators, he said.
Anchor Ship raised just less than 200 billion yen for its first fund, which it started in May 2007, Mr Tsuji said. He declined to comment on the fund's performance.
The company plans to start raising money for the new fund in September, president Hajime Tsuji said in an interview in Tokyo on Monday. The new investment vehicle is targeting an average annual return of 10 per cent a year over 10 years, he said.
Anchor Ship plans to add dry-bulk vessels even as the Baltic Dry Index, a measure of commodity-freight rates, suffers its longest decline in almost five years because of a glut of ships and resistance to signing new iron-ore contracts. The fund expects a revival as China's economic growth spurs demand for steel to make cars, buildings and railways.
'It's reasonable to assume that Chinese demand for iron ore in the medium to long term will increase,' said Ryota Himeno, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co. 'There's been a dip in demand due to negotiations on iron-ore prices but to make high-quality steel China needs to import the ore.'
The company owns 10 ships, including container vessels, very large crude carriers, a chemical tanker, a car carrier and a liquefied petroleum gas tanker, Mr Tsuji said. The ships are leased to Japanese lines, including Nippon Yusen K.K., the nation's largest shipping company by sales. The new fund may lease vessels to overseas operators, he said.
Anchor Ship raised just less than 200 billion yen for its first fund, which it started in May 2007, Mr Tsuji said. He declined to comment on the fund's performance.