STX PanOcean wins USD 5 billion deal

STX Pan Ocean entered the global pulp transportation market by securing a large consecutive voyage contract (CVC) with the world largest pulp and paper company.

STX Pan Ocean announced that the company has a fixed CVC with Brazilian pulp giant Fibria. It amounts to USD 5 billion.

CEO of STX Pan Ocean S.R. Bae, Chief of Atlantic business H.M. Park and CEO of Fibria, Carlos Aguiar joined the official contract signing ceremony held in Sao Paulo, Brazil on October 18.

Under the contract, STX Pan Ocean will transport the total export volume of wood pulp of Fibria over 25 years starting in 2012.

Fibria is a Brazilian pulp and paper company positioned as a global leader in pulp. With a production of 6 million tons of pulp and paper per year, Fibria holds 30 percent of the global pulp and paper market. Net revenues of Fibria are expected to reach over $4 billion this year.

In the beginning of this year, STX Pan Ocean restructured the organization and the Company especially divided the tramper division to two geographically specialized business, Atlantic business and Oceania business, which implies that the Company expanded its business scope in the Atlantic as a means of developing new business models.

As a result, the Company could successfully penetrate into the global pulp transportation market that is currently occupied by the European shipping companies along with steel focused transportation.
This CVC gives the Company a chance to not only become a worldwide leading wood pulp carrier, but also further expand its business areas. Moreover, the Company has secured stable sales revenues sources with this long term contact, which lasts for 25 years.

Fibria mentioned, STX Pan Ocean marketing and operation capabilities are proven in the world market,and we expect that STX Pan Ocean will provide us with stable shipment services over a long period of time and hope that this contract will be a win-win scenario between a vessel owner and a major shipper.STX Pan Ocean CEO, S. R. Bae said, We have been putting all our efforts to strengthen our marketing power all around the world.He added that the accomplishment attributes to management of STX Pan Ocean who have concentrated on seeking new business opportunities and developing strategic business models between shippers and carriers in Brazil and China.
<Korea Shipping Gazette>