TIM eMagazine Vol.3 Issue 7
Credits : gencoshipping.com
Genco Shipping & Trading Limited
Implements Comprehensive
Fleet Plan Ahead of IMO 2020
Regulations
P
ortfolio Approach Aimed at Improving Environmental
Footprint, Maximizing Shareholder Returns and
Reducing Fuel Costs
Genco Shipping & Trading Limited (NYSE: GNK)
(“Genco” or the “Company”) today announced that it
plans to install exhaust gas cleaning systems (“scrubbers”)
on its 17 Capesize vessels with options for installation on
an additional 15 minor bulk vessels. The balance of
the fleet is expected to consume compliant, low sulphur fuel beginning
in 2020, when new environmental regulations come into effect
capping sulphur emissions at 0.5%, down from 3.5% currently.
Genco will also continue to execute its previously announced fleet
renewal program aimed at selling older, less fuel-efficient vessels
and redeploying the capital towards high specification, fuel-efficient
vessels to further reduce emissions. The Company anticipates
scrubber installation to be completed in 2019, ahead of the January
1, 2020 deadline.
Genco estimates that the cost of each scrubber, including
installation, will be approximately $2 million. The Company is
currently in discussions with various lenders in regards to scrubber
financing. For further details of Genco’s plan for compliance with
IMO 2020, please see the presentation posted on Genco’s website
at www.gencoshipping.com under “Investor Relations—Events and
Presentations.”
John C. Wobensmith, Chief Executive Officer, commented, “Following
the recent addition of six modern, high specification drybulk vessels
to our fleet, and during a time when we continue to execute our fleet
renewal strategy, we are pleased to announce Genco’s comprehensive
plan for IMO 2020. Our portfolio approach is aimed at improving
our environmental footprint, maximizing shareholder returns and
reducing fuel costs in an evolving marine fuel environment. Based
on extensive evaluation and analysis, we plan to fit our Capesize
vessels with scrubbers given their trading patterns and higher fuel
consumption, which we expect to result in a very attractive payback
period. Options to install scrubbers on 15 minor bulk vessels will
also provide the Company with the flexibility to react to market
conditions as they develop.”
www.gencoshipping.com/
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