Pacific Basin spends $577 million on 'green' vessels

Leading dry bulk shipping company Pacific Basin has invested $577 million in four roll-on/roll-off vessels that it believes will help address environmental concerns in Asia.

Already in Europe, governments are keen to replace long-haul trucks with ro/ro vessels because the vessels produce lower carbon emissions than the trucks, per unit of cargo per mile, said Chief Executive Richard Hext.

Stronger environmental awareness in Beijing as a result of its efforts to clean the air for the Olympic Games would reshape attitudes towards pollution in both China and Asia, he added.

As a result, we expect demand for ro/ro vessels will grow in Asia, he was quoted as saying by the South China Morning Post¡£

We have a strong view that environmental issues are going to become more important to the world, he said.

The new vessels could operate at 21.5 knots and are more fuel-efficient than the firm's existing ships, Hext added.

According to the report, Pacific Basin ordered the ro/ro vessels in December for delivery between next year and 2010. The deal also carries options for two additional vessels in June.

Pacific Basin has also invested $40 million in a Chinese mainland gas supply company to prepare for tougher environmental requirements on shipping.

It is possible that shipping companies will be required to be carbon-neutral, said Hext.

The gas company, London-listed Green Dragon Gas, produces coal-bed methane, a gas resource that is a clean fuel when burnt.

Pacific Basin anticipates the investment will allow it to qualify for carbon credits that could be used to offset the CO2 produced by its ships in the future, the report said.