Fredriksen plans "crazy" tankers investment The world's most prominent shipowner has outlined audacious plans to invest hundreds of millions of dollars in new ships for his latest company, in defiance of market conditions that have forced many rivals into or close to bankruptcy. John Fredriksen told the Financial Times that his idea for newly founded Frontline 2012 would "seem crazy to most people" when a glut of ships was dragging down the crude oil tanker market. He said he believed the market would not return to balance until at least 100 of the 570-strong existing fleet of very large crude carriers (VLCCs) had been scrapped. However, improvements in modern ships" consumption of bunker - as ships" fuel is known - and a fall in VLCC prices from their $180m peak made the idea worthwhile, Mr Fredriksen added. Most industry observers had assumed that since Frontline 2012 was formed last year as part of a rescue package for Frontline, Mr Fredriksen's former flagship company, it would buy struggling competitors" ships. However, he said: "We're looking to build new VLCCs. At today's bunker prices, we'll save $10,000 a day. We've been offered newbuildings down to $85m, so the risk is at least at less cost. Mr Fredriksen - who puts his personal fortune at between $8bn and $13bn, depending on market conditions - said he was unsure how the VLCC orders, which he planned to place at the end of this year, would be financed. He made clear, however, that the orders would be substantial. He revealed Frontline 2012 was in the course of placing its first orders - for 10 new medium-range tankers for oil products. Mr Fredriksen had "some belief" in the product tanker market because the shift of world oil refining capacity to India and the Middle East would create demand for the vessels to take products to the main consumer economies. Mr Fredriksen's private Seatankers Group will order the vessels then sell them on to Frontline 2012, which is 52 per cent controlled by the magnate. We think it's a good deal. They're very economical vessels," he said of the order. The acquisitions were part of a plan to turn Frontline 2012 into the operator of the world's biggest tanker fleet.