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CMES confirms deal to buy four valemaxes at $448m

CMES confirms deal to buy four valemaxes at $448m
China Merchants Energy Shipping (CMES) and Vale have confirmed a deal for the latter to sell four of its 400,000 dwt VLOCs to the former under a deal worth $448m.

Vale Shipping Singapore, the vehicle that owns the valemaxes and subsidiary of Brazil’s Vale, will hand over the ownership of the giant ore carriers to CMES by September this year, according to a stock exchange filing from CMES.

The latest confirmed deal is an expanded agreement between the two parties after a September 2014 agreement that CMES would 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.

Last weekend, the first fully laden valemax called at Dongjiakou at the port of Qingdao, putting an end to restrictions by the Chinese authorities against the berthing of the giant bulkers.

In early July, China’s ministry of transport issued a statement saying that seven iron ore berths will be allowed to accommodate the VLOCs. The seven berths are at Dalian port’s Dagushan with one berth, Tangshan port’s Caofeidian with two berths, Ningbo-Zhoushan port’s Mayishan with one berth, another of Ningbo-Zhoushan port’s Shulanghu with two berths, and Qingdao port’s Dongjiakou with one berth.

The berths at Dalian’s Dagushan, Ningbo-Zhoushan’s Shulanghu, and Qingdao’s Dongjiakou are completed, with the remaining two under construction.