Russian Shipping Roulette

by Bridget Hogan

Several years ago – in 1990, to be exact – Sim Kee Boon, then Chairman of Keppel, came to New York to speak to a gathering of investors organized by Marine Money. The talk in the finance community then was all about Russia and Eastern Europe. Keppel’s Chairman, describing his company’s investment strategy, acknowledged the US community’s fascination with investing in its former cold war adversary. But, he said, if you want to make money, Vietnam and Southeast Asia were far better alternatives. Six years later, his vision may still be true.

The shipping industry in Russia is in a turmoil similar to that of the political system. As the country’s industry faces 1996, the position is that ships are old, investment insufficient to replace them, and the legal regime unattractive to draw in western funds.

This is only an excerpt of Russian Shipping Roulette

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