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CMES Orders Four VLCCs

CMES Orders Four VLCCs
State-owned shipping operator China Merchants Energy Shipping (CMES) has signed building contracts for four of its planned ten very large crude carriers (VLCC).

Two 308,000 dwt vessels will be built by Nantong Cosco KHI Ship Engineering (NACKS) and Dalian Cosco KHI Ship Engineering (DACKS), two joint venture shipyards controlled by Chinese shipping company Cosco and the remaining two will be constructed by Japanese Kawasaki Heavy Industries.

The construction of the four VLCCs is worth an estimated USD 352 million.

CMES expects the first vessels to be delivered at the end of 2018.

The remaining six VLCCs are expected to be ordered soon.

Potential value of the entire deal is expected to reach around USD 920 million.

CMES’ Hong Kong-based subsidiary, China VLCC Company Limited, which was set up in early September, will be in charge of vessel operation.

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