P&O NEDLLOYD PLACES FIRST CHARTER CONTRACT WITH REEDEREI BLUE STAR

In a move to diversify its sources for chartered ships, P&O Nedlloyd has placed its first contract with its own, newly formed ship management company ?Reederei Blue Star ?based in Hamburg.

The time charter agreement covers five 2500 teu vessels, each for a period of five years, with the first deliveries commencing in late 2003. The vessels, which will be built by Hyundai Heavy Industries in Korea and owned by German KG private investors, will be used to replace older tonnage and to cover positions in the P&O Nedlloyd network.

Commenting on the new arrangement, P&O Nedlloyd Executive Director Rutger van Slobbe said: "The five ships covered by this agreement will form a small part of our total chartered fleet which currently stands at 90 ships. Our substantial chartering requirements mean that it is important for us to have access to the full range of ship provision channels. The formation of Reederei Blue Star in Germany will help to diversify our sources of supply."