South Korean owner Pan Ocean has announced that it has signed a consecutive voyage contracts with Brazilian forestry company Fibria.
The $636m contract will see Pan Ocean transport wood pulp for Fibria for 15 years from 2019 to 2035. The contract also includes an option to extend the period to 25 years.
In the meantime, Pan Ocean announced that it has approved an investment facility of KRW165.5bn ($146m) for the construction of five wood pulp carriers. Brokers tell Splash Pan Ocean will order at Yangzijiang Shipbuilding in China.
The deal with the Brazilian firm is a remarkable comeback for Pan Ocean. In an earlier incarnation, as STX Pan Ocean, the line had signed a mega deal with Fibria back in 2010 and ordered 20 ships on the back of the $5bn COA. However, the deal failed to materialise and added another nail into the coffin of the once massive STX Group.