China Merchants Energy Shipping forms subsidiary to own valemaxes

China Merchants Energy Shipping (CMES) has established a wholly-owned subsidiary that will own and operate four 400,000 dwt VLOCs acquired from Brazil’s mining giant Vale.

The new Hong Kong-based subsidiary, named China VLOC Company Limited, will own the four VLOCs, or valemaxes, purchased at a total price of $448m by CMES.

Vale Shipping Singapore, the vehicle that owns the valemaxes and subsidiary of Vale, will hand over the ownership of the giant ore carriers to CMES some time this month.

CMES had earlier entered into a deal for it to order 10 VLOCs against a 25-year contract of affreightment (COA) with Vale.

A similar deal with was inked with state-owned China Cosco Group over another 10 valemaxes.

Cosco and China Shipping Development Co (CSDC) have also jointly set up a Singapore venture named China Ore Shipping to own the valemaxes acquired from Vale.

Posted 02 September 2015

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Lee Hong Liang

Asia Correspondent

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