South Korea’s Kukje Maritime Investment Corp (Kmarin) has finally put pen to paper for a series of very large ore carrier (VLOC) newbuildings at two shipyards in China.
Industry players say Kmarin is behind the recent order of two 325,000-dwt ore carriers - also known as Guaibamaxes - which Singapore-listed Yangzijiang Shipbuilding announced earlier today.
In addition to the pair of newbuildings at Yangzijiang, Kmarin has also booked two similar size vessels at Qingdao Beihai Shipbuilding Heavy Industry, shipbuilding sources told TradeWinds.
Officials at Yangzijiang and Beihai declined to comment on Kmarin’s contracts when contacted. Kmarin says it does not comment on market reports.
News of Kmarin's plan to order a series 325,000-dwt ore carrier newbuildings was first published in TradeWinds early last year.
Industry players say Kmarin’s newbuildings will be financed by Bank of Communications Financial Leasing (Bocomm Leasing).
It has ordered the 325,000-dwt ore carriers on the back of long-term contracts of affreightment (COA) from mining giant Vale. Details of the contracts have not been disclosed but sources familiar with Vale believe the mining company has fixed the vessels for at least 20 years.
Kmarin is said to be paying close to $75m each for the 325,000-dwt newbuildings. The ships will be LNG-ready and will meet the IMO Tier-III's NOx emission standards.
Yangzijiang and Qingdai Beihai are slated to deliver the VLOCs during the first half of 2021.
Industry players say Kmarin needs a total of eight Guaibamax vessels.
“It (Kmarin) will place order the remaining four newbuildings next month or the following month,” said the shipbuilding source. “We believe Kmarin will order the vessels with the same shipbuilders but we do not know if it will award all four ships to a single shipyard or split them into two different companies.”
Kmarin’s two VLOC newbuildings each at Yangzijiang and Qingdao Beihai lift the total number of 325,000-dwt ore carriers under construction at shipyards in the Far East to 40.
The newbuildings have been ordered against long-term COAs from Vale.
South Korea’s Polaris Shipping tops the order list with 13 units of Guaibamax newbuildings under construction at Hyundai Heavy Industries.
It is followed by Pan Ocean and VLOC Holding with six newbuildings each. Other shipping companies that have the 325,000-dwt ore carriers on order include Korea Line, H-Line Shipping, SK Shipping, China Ore Shipping and U-Ming Marine Transport.
