Under an agreement, the subsidiary will secure multipurpose vessels of approximately 10,000-dead-weight tonnes at a price of $10 million each for carriage of general dry cargo, steel and machinery between Asia and North America.

The registered capital of the subsidiary is 30 per cent of the purchase price of each vessel. Jutha Maritime will invest 51 per cent of the funds and Nordana the rest. The other 70 per cent of each vessel's purchase price will come from bank loans.

Jutha Maritime president Chanet Phenjati said that the company could manage the vessels at low cost because they have Thai crews, while Nordana would source the cargo for vessel charters for a contract period of 8 to 10 years. Nordana can also provide the subsidiary with use of its worldwide network.

He added that Nordana could find a source of funds at low rates which will help the joint-venture operate with less capital and less management costs than usual.

"Jutha Maritime expects revenue of Bt870 million this year," said Chanet.

Prospective returns for Jutha Maritime on this investment will be ship management fees and an annual profit at a "suitable level from the investment", Chanet said. The joint-venture company plans to buy two vessels this year and 10 by 2008.

In 2005, Jutha Maritime logged sales of Bt700 million, of which Bt300 million came from chartering fees from Nordana.

Chalida

Ekvitthayavechnukul

The Nation