Bulkcarriers and Tankers
The bulk shipping industry provides the vital artery in the global supply chain. The transport of raw materials and minerals, together with energy in the form of crude oil and refined products, can only be effectively carried out by the economies of scale afforded by ocean going bulk carriers and tankers. With the sustained growth from the developing Asian economies for both raw materials and energy, sea borne trade will grow and the business of Wah Kwong Maritime Transport Holdings Ltd is to provide the ocean going transport to meet that demand.

Shipping adds value to commodities - iron ore delivered to a steel mill or crude oil delivered to a refinery is worth much more than when it comes out of the ground.

Asset based shipowning companies such as Wah Kwong Maritime Transport  derive their income from charter hire income paid on a daily basis for the rental of their ships over agreed periods and from proceeds derived from disposal of ships at opportune times.

Bulk shipping clearly differentiates itself from the container shipping sector, which is based around the transport of manufactured goods in unitized form. Container shipping, particularly the trans-pacific and
Asia-Europe trades are heavily dependent on sustained demand for imported goods from Asia and are thus more susceptible to any downturn in the U.S./Eurozone economies. Bulk shipping, by contrast, is more geared to the supply of raw materials for the steel industry, infrastructure and heavy industries such as shipbuilding, together with coal, crude oil and oil products to meet  energy demands, hence the growth in earnings and profitability of bulk shipping companies is inextricably linked to continued economic growth, which in recent years has been driven by Asian, and particularly Chinese, demand.

LPG
In 2010 the Group’s LPG interests were incorporated into Wah Kwong Maritime Transport Holdings Ltd., consisting of ten fully pressurized small LPG carriers of between 3,500 and 5,000 cbm and two
fully-refrigerated “Midsize” LPG vessels of 35,000cbm and 39,000cbm respectively. The vessels are all Japanese built and are held in joint venture with Exmar N.V. of Belgium. Exmar are an international shipping group who specialize in activities relating to the transport of gas and in particular the transport of liquefied gases, such as LNG, LPG and ammonia. The Group’s “Midsize” vessels, which refers to vessels of between 20,000 and 40,000 cmb are involved in the carriage of LPG and ammonia worldwide whilst the Group’s small LPG carriers are primarily used in the coastal transport of LPG and petrochemical gases in Europe and the Far East.

LPG (butane and propane) is produced from the reclamation and refining of natural gas or petroleum and is mainly used as a fuel (for transport, electricity generation and heating) or in various industrial applications in the petrochemical industry. The biggest production centres are in the Middle East, Algeria, South-East Asia and the North Sea (the UK and Norway). Most LPG products (approximately 80%) are transported in very large gas carriers (VLGCs).

Ammonia is an inorganic chemical product that is used for the production of fertilizers and explosives. Approximately 11% of the world’s production of 15 million tonnes is transported by ship (mainly in midsize gas tankers and large gas carriers) to the sales markets. The biggest exporters are based in areas where cheap natural gas (the main raw material for the production of ammonia) is available, such as the former Soviet Union, the Middle East, the Caribbean, South-East Asia and Australia.