Ship Finance International Buys Two CMA CGM Ships

Ship Finance International Buys Two CMA CGM Ships

Ship Finance International, which owns and operates ships for charter to liner companies, said it would acquire two container vessels from French container shipping company CMA CGM for $342 million.

The acquisition of the Magellan and the Corte Real, which both have capacities of 13,800 20-foot equivalent units, is expected to generate a free cash flow of about 9 cents a share per year, after operating costs and debt service, Ship Finance said in a statement.

The deal is expected be completed in the next few weeks and will add nearly $275 million to the company's charter backlog.

CMA CGM is No. 3 on the JOC list of Top 15 Container Fleet Operators

Ship Finance International has been acquiring second-hand container vessels from liner companies over the last three years, when the downturn in world trade and vessel overcapacity led to a similar downturn in vessel prices.

The demand for containers is expected to rise as goods move around the world to meet the growth of the consumer classes in China, Brazil, the Indian subcontinent and the Middle East.

-- Contact Peter T. Leach at pleach@joc.com.