Fredriksen looks to farm out bulkers

Fredriksen looks to farm out bulkers

Having announced a joint venture last Friday that could see some of his out-of-use OSVs put into use in the fishing sector, John Fredriksen could now also see some of his loss making bulkers deloyed as fish farms.

Marine Harvest, a giant salmon farmer in which Fredriksen is a major investor, is looking at a new design concept whereby panamax bulkers become floating fish farms. A panamax could hold around 1m fish.

“The economics of a conversion is not fully known yet, but a ballpark estimate would be $7m for a 10-year-old panamax with $2.5-5m of conversion costs with licenses costing in the range of $6m.

This compares to a traditional fish farm where the sea pen costs around $6m, but permits would be more costly – to the tune of $40m or more,” Arctic Securities shipping analyst Erik Nikolai Stavseth said in a note.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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