VESSELS

12 Months Ended

Dec. 31, 2011

VESSELS [Abstract]

VESSELS

9.   VESSELS

(in thousands of $)	2011			2010
Cost		657,890			657,890
Accumulated amortization		(221,617	)		(198,858	)
		436,273			459,032

In 2010, the Company purchased two 2010-built Capesize dry bulk carriers with existing time charters at a cost of $134.2 million, excluding the value of the time charters.

Depreciation expense was $22.8 million, $19.6 million and $14.3 million in the years ended December 31, 2011, 2010 and 2009, respectively.