WAM forays into chemical tanker segment

Chennai-based shipping company West Asia Maritime (WAM) has announced its foray into the chemical tanker segment, with a capacity to ferry 6,000 to 24,000 dead weight tonne (DWT) of cargo.

"WAM is entering into the chemical cargo transportation with two ships including M V Ace 7 and M V Havi Ocean," said Abdul Qadir A Rahman Buhari, managing director of WAM.

Qadir said the vessels would be double hull stainless steel and will be capable of hauling vegetable oil to the country and ship out sulphuric and phosphoric acid.

According to the International Maritime Organisation (IMO), shipping companies should avoid using single hull vessels for transporting vegetable oil from January 1, 2007.

"The vegetable oil imports from Malyasia and Indonesia are on the rise and we have already chartered two double hull vessels for the purpose. For exports, we have secured business from major clients such as Reliance Industries, Sterlite and Hindalco," Qadir said. Industry analysts pointed out the company should focus on getting the cargo for both the voyages.

"The ability to control the vessel through chartering at lower rates will give better dividends. Moreover, there are very few players including Scandinavian and Korean countries," they said.