China Merchants Energy Shipping has pencilled in an order for a series of newcastlemax bulk carriers at New Times Shipbuilding.
The Hong Kong-headquartered company disclosed that it has contracted the Jiangsu-based shipyard to build eight conventional marine fuel 210,000-dwt newbuildings to be delivered from 2028.
It said the total value of the newbuilding contract is CNY 4.4bn ($607m), or $76m apiece. The cost includes scrubbers and several energy-saving devices.
News of CMES planning to order the series of newcastlemaxes was first reported by TradeWinds last month. Then, the company was said to be ordering six vessels.
Industry sources said besides the eight ships at New Times, CMES will also be ordering six vessels at state-owned Qingdao Beihai Shipbuilding Heavy Industry.
Sources said CMES plans to install shaft generators on the Qingdao Beihai’s newbuildings and this would cost the company an additional $2m per ship. They added that the state-owned shipyard has already reserved 2027 and 2028 berth slots for the newcastlemaxes.
CMES said it had ordered the new 210,000-dwt bulk carriers as part of its fleet renewal and expansion programme. The investment in the newbuildings is also in line with the company’s target to achieve carbon neutrality by 2060.
The Chinese owner said the newbuilding deal will be funded with the company’s own funds and bank loans. It will be putting down 15% for the first down payment and 50% for the final payment.
On Tuesday, CMES announced that it would be taking a controlling stake in Antong Holdings — a transport and logistics company through the issuance of new shares.
In return, Antong Holdings will be acquiring 100% equity in Sinotrans Container Lines and 70% equity in Guangzhou China Merchants Ro-Ro Transport.
The purpose of the restructuring is to simplify operations and to do a separate listing for the liner and ro-ro business under Antong Holdings.
Sinotrans Container has 25 ships ranging from 4,000 teu to 300 teu, built from 1996 to 2023, while Guangzhou China Merchants has 10 car carriers and a ro-ro.
