NYSE-listed Danaos Corp has launched a new joint venture to acquire second-hand container vessels at the bottom of the cycle.

The joint venture, Gemini Shipholdings, is 49% owned by Danaos and 51% owned by Danaos founder Dr. John Coustas. Danaos paid US$7.35m for its Gemini stake.

Gemini has acquired three container ships at "attractive discounts to market values", said Danaos Sept. 23. The three vessels are the 6,422teu, 2001-built NYK Lodestar; the 5,610teu, 2002-built Suez Canal; and the 5,544teu, 2002-built Genoa.

The NYK Lodestar was acquired from NYK and has been chartered back to the Japanese carrier for two years "at an above-market rate", said Danaos. Both the Suez Canal and Genoa were taken by Gemini on seven-year bareboat charters with a purchase obligation at the end of the employment period.

Danaos has the right to purchase the remaining 51% interest in Gemini at fair market value after Dec. 31, 2018, or earlier if its credit agreements permit.

According to Coustas, the Gemini joint-venture structure "will allow Danaos to resume its growth strategy as weakness in the container-ship market presents compelling value". He emphasised that the Gemini platform allows for acquisitions "without diluting our shareholders".