Minoan Lines Sticks To Fleet Renewal Program

The construction of eight modern vessels is proceeding without any delays, said Crete-based ferry operator Minoan Lines last month after press reports implied the company was in financial difficulties.

Minoan’s fleet renewal program centers on eight new vessels at a cost of 300 billion drachmas ($720 million). Of four fast-ferries ordered from Italian shipyard Fincantiere, two have already been delivered and currently service the Piraeus-Heraklion route. The other four will be constructed at the Samsung shipyard in South Korea. Minoan expects to take delivery of the eighth vessel by spring 2003.

The company said it has secured the finances to pay for the acquisitions. A bank loan will cover 70 percent of the costs while the remaining 30 percent will come from Minoan’s own capital.

In a recent press report, Minoan’s president, Konstantine Klyronomos, said the firm expects to record 60 billion drachmas in revenues, up 29 percent, and profits before provisions of some 19.5 billion drachmas this year.