Tonnage providers who were behind much of the boom in pure car/truck carrier newbuilding orders could be the target of Norway's Wilh Wilhelmsen as it prepares to raise up to $400m with an initial public offering (IPO).

Part of the cash raised is likely to be invested in acquiring vessels.Some tonnage providers are known to be struggling.

Wilh Wilhelmsen chief executive Ingar Skaug said:"I think securing tonnage is more likely than buying companies." He added: "There will be ships built that need someone to take them over. We think there will be opportunities coming along." Operators such as Wallenius Wilhelmsen Logisitics (WWL) and its peers like Hoegh, NYK, K Line and Mitsui OSK Lines are not in distress but for tonnage providers "we may not have seen the end of it yet", says Skaug. It may be "very attractive" for some of them to sell ships.

Brokers estimate that around 150 car carriers have still to be delivered, despite some owners, including TMT, cancelling.

Commented one broker: "The market doesn't need the ships but I think we have definitely seen the bottom [of the cycle]. There are less vessels laid up today than a half year ago." Oslo-listed Wilh Wilhelmsen announced a restructuring this week. It will create a new holding company that will own a spun-off listed entity, Wilh Wilhelmsen ASA, covering its shipping and logistics activities and subject of the IPO.

Also, it will continue as the main shareholder in Wilhelmsen Maritime Services (WMS).

Skaug, 64, who will retire as chief executive of Wilh Wilhelmsen following the IPO and be replaced by Thomas Wilhelmsen ( see main story ), says the group has emerged from the financial crisis "in a pretty good way".

American Shipping & Logistics, Eukor and WMS have been performing well while car-carrier giant WWL has been relatively hard hit given dramatic falls in cargo volumes from Japan to Europe and from elsewhere in Asia to the US.

"We did some phenomenal cost restructuring in WWL that has helped," said Skaug.

The logistics operations, which had facilitated contracts and contract extensions "without having to take a beating on the rates side", will also see opportunities. The IPO, says Skaug, will provide funds especially for investments in emerging markets.

Also, he sees opportunities in maritime services, a sector typically fragmented and open to consolidation.

Meanwhile, it is confirmed that Lone Fonns Schroeder has been replaced as chairman of WWL by Leif Loddesol.

A report in Scandinavia claims she has been forced out but Skaug claims the change is purely for "statutory" reasons.

He describes it as a restructuring whereby Wilh Wilhelmsen and its joint partner in WWL, Sweden's Oy Wallenius, agreed for the first time to have a "neutral" chairman.

Historically, WWL's chief executive has come from Wilh Wilhelmsen and the chairman from Wallenius. Loddesol retired some time ago from Wilh Wilhelmsen.

Skaug says he cannot comment on claims in the publication Kapital of Schroeder's involvement with her bodyguard. She remains president of Wallenius.

Source: TradeWinds.no