CMES, CMI finalize shipbuilding contracts worth $160 mn

On 27 December, China Merchants Energy Shipping Co., Ltd. (CMES) issued a statement regarding a connected transaction involving the ordering of ships from related parties.

According to the statement, CMES, through its wholly owned subsidiary, has entered into four Ship Ordering Agreements with China Merchants Industry (CMI), a related entity. These agreements pertain to the procurement of two dry bulk carriers with a capacity of 82,000 deadweight tons (dwt) each and two multi-purpose vessels with a capacity of 62,000 deadweight tons (dwt) each, amounting to a combined value of $160 million. The anticipated delivery timeline for these vessels spans from the first half of 2026 to the conclusion of 2026.

As detailed in the announcement, the recently ordered dry bulk carriers and multi-purpose vessels incorporate the latest energy-efficient and environmentally friendly designs developed by the Shanghai Ship Research and Design Institute (SDARI).

Specifically, the 82,000 deadweight tons (dwt) dry bulk carriers come equipped with desulphurization towers and axle-belt generators, thereby enhancing the structure of CMES’s Barnabas-type fleet and elevating its overall quality. On the other hand, the 62,000 deadweight tons (dwt) multi-purpose vessels feature 150-ton cranes, contributing to an augmentation of the cargo-carrying capacity within CMES’s multi-purpose fleet and laying a robust foundation for market expansion.

Additionally, the announcement divulged that CMES convened the fifth meeting of the seventh session of its Board of Directors on November 29, 2023. During this meeting, the Board of Directors approved an additional order for the construction of several dry bulk carriers at Jinling Shipyard, a subsidiary of China Merchants Industry.

Notably, in November 2013, CMI and CMES reportedly celebrated a signing ceremony encompassing a series of orders for diverse vessel types. The vessels resulting from this order were constructed by China Merchants Heavy Industries Haimen shipyard (CMHI Haimen shipyard) and China Merchants Jinling Shipyard (Nanjing). The collective value of the eight newbuilding orders, covering two 82,000 deadweight tons (dwt) dry bulk carriers and two 62,000 deadweight tons (dwt) multi-purpose vessels, amounted to $508 million.

With the recent order, CMES has now procured four 7,800 methanol dual-fuel car carriers, four 82,000 deadweight tons (dwt) dry bulk carriers, and four 62,000 deadweight tons (dwt) multi-purpose vessels within a span of one and a half months from shipyards under the umbrella of China Merchants Industry. The total expenditure for these acquisitions stands at $668 million. This series of transactions underscores CMES’s strategic and significant investments in expanding and diversifying its maritime fleet.