KfW IPEX-Bank finances four bulk carriers for European short sea shipping
News from 2018-01-09 / KfW IPEX-Bank
Together with DekaBank, KFW IPEX-Bank provides around EUR 51 million to finance four 16,500 dwt short sea bulk carriers for use in the North and Baltic Seas for Ireland's Arklow Shipping. The financing is backed by a 95% Hermes cover. In addition to its role as the mandated lead arranger, KfW IPEX-Bank is also acting as Hermes agent. Since the vessels are being built at the Ferus Smit shipyard in Leer (Lower Saxony, Germany), the financing provided by KfW IPEX-Bank and DekaBank is supporting German exports.
Short sea shipping in the North and Baltic Seas
The family-operated Irish company Arklow Shipping currently has a fleet comprised of 51 short sea bulkers that serve a niche segment in northwestern Europe owing to their size. These relatively small ships transport bulk cargo of all kinds, e.g. grain, coal, ore and aluminium. They are deployed in European short sea shipping from Arklow in Ireland and Rotterdam ("European short sea market"). Short sea shipping is an important transport policy instrument for the European Union because it offers a more efficient, affordable and environmentally friendly alternative to road transport.
As the short sea bulkers will be deployed in the North and Baltic Seas, they have an ice class (1A) to meet customer specifications. Delivery is scheduled between September 2018 and February 2020.