Shipping company China Merchants Energy Shipping (CMES), part of China Merchants Group, has ordered a total of eight new vessels from China Merchants Industry.
The announcement disclosed that CMES through its wholly-owned subsidiary signed 8 Ship Order Agreements with China Merchants Industry on November 13, with a total price of US$508 million. The order includes the construction of two 82,000 dwt dry bulk carriers and two 62,000 dwt multi-purpose vessels; also, exercising the buyer’s order option, the order is for the construction of four 7,800 CEU methanol dual-fuel PCTCs. among them, the delivery period for the four bulk carriers will be from the second half of 2025 to the end of 2026, and the place of delivery will be the China Merchants Industry and its subordinate shipyards, and the delivery period for the four PCTCs will be the third quarter of 2026.
Based on the announcement, the above 82,000 dwt dry bulk carriers and two 62,000 dwt multipurpose vessels will adopt the latest energy-saving and environment-friendly ship design of Shanghai Ship Research and Design Institute (SDARI) of China State Shipbuilding Corporation (CSSC).
The 82,000 DWT dry bulk carriers are equipped with desulphurization towers and axle-belt generators, which will enhance the structure and quality of CMV’s Panamax fleet; the 62,000 DWT multipurpose carriers will be equipped with 150-ton cranes, and will enrich the cargo-ready capacity of CMES’s multipurpose fleet, laying a solid foundation for expanding the market. The above methanol dual-fuel-powered car carrier will be equipped with a 60-cylinder-bore methanol internal combustion engine, which can use green methanol fuel as well as traditional diesel fuel when necessary, and will ensure the flexibility of fuel refueling for the vessel.
The announcement disclosed that the Fourth Meeting of the Seventh Session of the Board of Directors of CMES held on October 30, 2023 considered and passed the “Resolution on Connected Transaction on Bulk Ordering of Dry Bulk Carriers”, and the Board of Directors agreed to order a number of dry bulk carriers in the shipyards subordinate to China Merchants Industry.
On November 13, 2023, CMES through its wholly-owned single ship company, signed an order for the construction of two 82,000 dwt dry bulk carriers and two 62,000 dwt multi-purpose vessels, respectively with China Merchants Industry, for a total of USD 160 million for the construction of the four vessels.
At the Twentieth Meeting of the Sixth Session of the Board of Directors of CMES held on March 28, 2023, the ”Resolution on Connected Transaction of Ordering 2+4 Ro-Ro Vessels from a Related Party” was considered and passed, and the Board of Directors agreed to order 2+4 (buyer’s option vessels) methanol dual-fuel PCTCs from China Merchants Industry, a related party, at a net price of not more than US$96 million per vessel.
On March 29, 2023, CMES’s wholly-owned shipping company, entered into a Vessel Ordering Agreement with China Merchants Industry for 2 methanol dual-fuel PCTCs, and entered into a Purchaser’s Option Agreement with China Merchants Industry for 4 PCTCs, under which the buyer has the right to choose within a certain period of time whether or not to order the agreed vessels at the agreed price, which will come into effect subject to approval by the shareholders of CMES at its shareholders’ general meeting.
On May 12, 2023, the 2022 Annual General Meeting of CMES considered and approved the “Resolution on Connected Transaction of Ordering 2+4 Ro-Ro Vessels from China Merchants Industry”. On the same day, the Vessel Ordering Agreement for 2 Methanol Dual Fuel PCTCs with an order value of USD192 million signed on March 29 became effective.
On November 13, 2023, CMES exercised the above buyer’s order option and signed an order with China Merchants Industry through its wholly-owned single-ship company for the construction of 4 methanol dual-fuel PCTCs, and in order to further improve the portability and cargo capacity, the option was changed from 9000 model to 7800 model within the scope of authorization by the board of directors.
In order to further improve the portability and cargo carrying capacity, within the scope of authorization by the Board of Directors, the model selection was changed from 9000 to 7800, and the total cost of the four methanol dual-fuel PCTCs was approximately US$348 million.