SEVEN Irish-based shipping groups are investing more than $1 billion (€640,000) in a two-year fleet expansion programme.

Some 21 new and secondhand vessels have been purchased by the groups this year, and a further 27 vessels are anticipated, according to the Irish Maritime Development Offfice (IMDO), which reports to Minister for Transport Noel Dempsey.

Mr Dempsey's junior minister, Noel Ahern, has described the development as "very welcome", and said it suggested underlying indicators for the world economy were "very positive". The expansion plans will sustain 300 jobs onshore and create further posts in an emerging "Irish maritime finance and commerce cluster", the IMDO says.

Several Irish-based banks, ship managers and brokers are reported to be involved in structuring, financing and running the new deals. The single largest investment - some $700 million - is being undertaken by D'Amico Ireland, a Dublin-based company which plans to build 14 new vessels in Chinese and Korean shipyards.

The company, listed on the Italian stock exchange, is relocating to new offices on Sir John Rogerson's Quay, Dublin.

The IMDO says Irish companies, including Seabess, Mainport Group and Arklow Shipping Ltd, are also expanding, focusing on bulk transport and energy.

Arklow Shipping Ltd recently announced it will build a further four vessels at the Astilleros Murueta shipyard in Spain for about $54 million - having already purchased six ships from the same yard. Arklow runs a fleet of 35 ships, and has acquired vessels under the Dutch flag.

The IMDO points out global shipping markets are at an "all-time high", mainly due to demand from China, India and Asian sub-continent economies for raw materials, grain and energy products.

"Irish-based ship owners are demonstrating that . . . Irish companies can compete in tough and highly challenging global markets," said Capt Dave Hopkins, president of the Irish Chamber of Shipping and marine director of Mainport in Cork.