Genco Unveils Comprehensive Plan Ahead of IMO 2020

BulkerIllustration. Image Courtesy: Pexels under CC0 Creative Commons license

The US-based dry bulk shipping company Genco Shipping & Trading Limited plans to install exhaust gas cleaning systems on its seventeen Capesize vessels with options for installation on an additional fifteen minor bulk vessels.

The company anticipates scrubber installation to be completed in 2019, ahead of the January 1, 2020 deadline when the IMO sulphur cap enters into force.

Genco estimates that the cost of each scrubber, including installation, will be approximately USD 2 million. The company is currently in discussions with various lenders in regards to scrubber financing.

As informed, the balance of the fleet is expected to consume compliant, low sulphur fuel beginning in 2020, when new environmental regulations come into effect capping sulphur emissions at 0.5%, down from 3.5% currently.

Genco will also continue to execute its previously announced fleet renewal program aimed at selling older, less fuel-efficient vessels and redeploying the capital towards high specification, fuel-efficient vessels to further reduce emissions.

“Following the recent addition of six modern, high specification drybulk vessels to our fleet, and during a time when we continue to execute our fleet renewal strategy, we are pleased to announce Genco’s comprehensive plan for IMO 2020. Our portfolio approach is aimed at improving our environmental footprint, maximizing shareholder returns and reducing fuel costs in an evolving marine fuel environment,” John C. Wobensmith, Chief Executive Officer, commented.

“Based on extensive evaluation and analysis, we plan to fit our Capesize vessels with scrubbers given their trading patterns and higher fuel consumption, which we expect to result in a very attractive payback period. Options to install scrubbers on 15 minor bulk vessels will also provide the company with the flexibility to react to market conditions as they develop,” Wobensmith added.

Genco Shipping & Trading transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. As of October 9, 2018, Gencos’s fleet consists of seventeen Capesize, five Panamax, six Ultramax, twenty-one Supramax, one Handymax and fourteen Handysize vessels with an aggregate capacity of approximately 5,430,000 dwt.

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