Shipping firm Jinhui Holdings Co Ltd said on Friday it will purchase a new vessel for US$35.3 million to meet growing demand for cargoes to China.
The 55,500 deadweight ton-vessel, a single screw diesel-propelled bulk carrier, is expected to be delivered between February and May of 2005.
"Strong demand of various raw materials is pushing the dry bulk freight rates to historical highs and further momentum is building," Thomas Ng, a managing director of Jinhui said in a statement.
The Hong Kong-based company said its Norway-listed subsidiary, Jinhui Shipping and Transportation Ltd, entered into an agreement to purchase the vessel from Super Venture International. The deal will be funded by internal resources.
Shares in Jinhui are expected to resume trading on Friday after they were suspended on Wednesday pending the announcement.
The stock ended at HK$27.10 on Tuesday, up about 24 times over the past year.