Background

Shipping projects are characterised by:

• Earnings are based on time charters or the spot market.
• Relatively easy to finance if the ships are dedicated to a project on a long term time charter, not otherwise.
• Technically simple (but LNG tankers require specialist metallurgy).
• Ships usually registered in a country where taxes are low or non-existent and where regulations allow ships to be manned by foreign and usually cheaper labour (flags of convenience such as Panama or Liberia).
• Ships are dry docked at regular intervals, usually every 2 or 2.5 years.  During this time they incur the costs of dry docking and they do not earn any revenues.

How Promoter handles Power Projects

Promoter handles the following type of ships:

• LNG (liquefied natural gas)
• Crude Oil (ULCC, VLCC, SuezMax, Aframax)
• LPG/Ammonia/Ethylene
• Product Tankers (including Methanol)

It takes into account the dry docking costs and loss of earnings.

The user places key coordinates so that Promoter can illustrate the network.

Typical Project Cash Flows

A ship typically has to be dry docked every two to three years for major maintenance.  This reduces the revenues for the appropriate period and increases the costs.  The cash flows are typically as above.  the length and cost of the dry docking may increase over the life of the ship.  The main operating cost is typically the fuel (usually marine diesel).