Philippines shipowner Dennis Uy’s Chelsea Logistics is teaming up with Japan's Kumiai Senpaku to finance a newbuilding.

Kumiai will fund the construction of the 98-metre passenger ferry for Chelsea unit Starlite Ferries at Kegoya Dock in Japan, the Philippine Star said.

It is due for delivery in April 2020 and will be bareboat chartered over 20 years by Kumiai’s subsidiary, Southern Pacific Holding Corp, to Starlite.

The Philippines company is obliged to buy the vessel at the end of the term.

Chelsea CEO Chryss Alfonsus Damuy said the company’s new strategic partnership with Kumiai underscores its longstanding and ongoing commitment to shipping modernisation.

“We look to Kumiai as a leader in Japan’s shipping industry, whose excellence can bring our local shipping industry to global standards,” Damuy said.