Ciner Shipping Industry & Trading has expanded its dry bulk orderbook with a trio of newbuildings in China.
Chengxi Shipyard, a unit of China State Shipbuilding Corp (CSSC), has obtained a contract to build three bulkers for the Turkish company. The vessels will be built to a new, large kamsarmax design and are due for delivery in the second half of 2024.
Shipbuilding and ship-management sources in Europe and China said the 88,800-dwt ships will run on conventional marine fuel and will be built to the International Maritime Organization’s Tier III NOx standard.
There are no options attached to the deal. Shipbuilding sources estimate the bulkers cost about $34m each.
Sources at Chengxi confirmed receiving an order for three kamsarmaxes but declined to reveal the identity of the company that contracted them.
As secondhand bulker values soar, newbuildings become more attractive for shipowners.
However, newbuilding prices have been rising as well, particularly for resale deals. An 85,000-dwt bulker under construction at Chengxi cost $28.5m in March. A similar vessel being built at Shanhaiguan Shipbuilding fetched $36.03m in an auction last week.
Ciner’s order comes shortly after the Turkish company booked four ultramaxes at New Dayang Shipbuilding, as TradeWinds reported earlier this month.
Ciner observers said the orders should not be viewed as an aggressive expansion move.
The Turkish company overwhelmingly relies on newbuilding tonnage, and the kamsarmaxes and ultramaxes it currently has on the water will be more than 10 years old when its newly ordered vessels have been constructed.
Between 2011 and 2013, Ciner took delivery of seven ultramaxes from New Dayang and four kamsarmaxes from Hyundai Mipo Dockyard of South Korea.
Expanding through newbuildings has been the Turkish company’s standard policy since it was established in 2009 by local businessman Turgay Ciner, whose interests span the media, energy and mining industries.
However, it was a more unusual move from the company when it bought a capesize pair on the secondhand market. As TradeWinds reported on 6 September, Ciner spent $88m on the acquisition of the 180,000-dwt Stella Nora and 181,000-dwt Stella Naomi (both built 2016).
The purchase of both vessels is backed up by long-term employment secured with German energy giant RWE, a long-standing client of Ciner.
Excluding Ciner's latest order, Clarksons currently features Chengxi as having 19 kamsarmaxes under construction.
Chengxi notched up another order on Monday, when it announced its first deal with commodity giant Vitol for the construction of at least one 37,000-dwt bitumen carrier.
