Malaysian Bulk Carriers Berhad's (MBC) wholly-owned subsidiary, Lightwell Shipping Inc., has entered into a joint venture (JV) agreement with Commonwealth Shipping Company Inc.
The JV is to establish a company called Progress Shipping Pte Ltd.
The JV company, incorporated in Singapore, will own and operate vessels, MBC said in an announcement to Bursa Malaysia Securities.
The JV is on a 50:50 basis and Lightwell will fund its share through internally generated funds, it said. MBC also said Commonwealth Shipping is a company managed by the Espinosa family of Mexico, who are established players in the dry bulk shipping trade in that country.
Their primary line of business is the shipping of bulk cargo in the Americas, it added. Progress Shipping Pte Ltd intends to acquire bulkcarrier(s) for trade within the US Gulf/Mexico region.
MBC said that Commonwealth Shipping is extremely familiar with that area.
With its current expertise and established network, both Commonwealth Shipping and Lightwell are of the view, that the JV will open new relationships with opportunities beneficial to both parties. - Bernama