NEGROS Navigation Co. (Nenaco) will acquire a newer yet previously owned ship later this year since it expects a shortage of cargo vessels in the country.

The company, which has been allowed to suspend debt payments to its creditors, said a foreign financing company has agreed to bankroll part of its planned acquisition, estimated to reach anywhere from $6 to $10 million, Nenaco chairman Sulficio O. Tagud Jr. said.

“A foreign lending institution has committed to finance the ship acquisition, as it sees the company is doing well. We have given them the specifications and they too, are looking for cargo vessels. We want a cargo vessel which is about 10 years old that cost about $6 to $10 million. For now it’s very hard for a shipping line to acquire a brand- new ship,” Tagud said.

The shipping executive said the timing for buying cargo vessels is just right since fruit companies such as Dole Philippines and Del Monte Philippines and the National Food Authority are already complaining about the lack of available ships to move their goods.

During the past few months, Aboitiz Transport System Corp., the country’s largest shipping company, has sold four of its cargo vessels and assigned some freight to a joint venture with Maersk Lines.

After the acquisition, Nenaco will have to sell its 28-year-old San Sebastian cargo vessel, proceeds from which could either be used to pay for some of its debts or partly cover the cost of the new vessel.

“We have ships as old as 25 and 28 years. The maintenance is still good, but older ships tend to use more fuel,” he said.

Ever since last year, Nenaco was able to sell two of the four vessels that it earlier planned to sell. These were the M/V Mary the Queen of Peace and M/V San Lorenzo Ruiz.

As a result, Nenaco posted a net income of P130 million in the first half of the year reversing its P235.93-million losses from January to June last year.

The company is undergoing a 10-year rehabilitation starting 2004 due to its total outstanding obligations of about P2.4 billion.

Tagud said the company has already surpassed their projected net income of P85 million for the year. Nenaco incurred losses amounting to P460 million for 2006.

NEGROS Navigation Co. (Nenaco) will acquire a newer yet previously owned ship later this year since it expects a shortage of cargo vessels in the country.

SINGAPORE—The cost of shipping coal, iron ore and other dry-bulk goods may stay near record highs, boosted by rising demand for raw materials and fuel.