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China Merchants Energy Shipping buys five new VLCCs

China Merchants Energy Shipping buys five new VLCCs
China Merchants Energy Shipping (CMES) and its subsidiary have confirmed orders to build five VLCC newbuildings from two separate Chinese shipbuilders.

China’s largest shipbuilder Dalian Shipbuilding Industry Co (DSIC) will construct two 319,000 dwt VLCCs scheduled for delivery in June 2016 and January 2017. Shanghai Waigaoqiao Shipbuilding will build the other two 318,000 dwt VLCCs slated for delivery in October 2016 and April 2017. The four new ships are worth a total of $389.5m

All the newbuildings will be incorporated with eco-friendly designs to cut back on fuel consumption and enhance energy efficiency, according to Shanghai-listed CMES.

Meanwhile, CMES subsidiary Haihong (Hong Kong) Shipping has exercised an option at DSIC to build one 319,000 dwt eco-friendly crude tanker, with delivery scheduled no later than 30 September 2017.

CMES said the new vessels investment will be 40% funded by internal resources and 60% from bank loans.

Earlier this month, CMES has partnered Sinotrans & CSC Group to form a VLCC joint venture aimed at serving China’s rising demand for oil imports.

In the dry bulk shipping business, CMES has recently agreed to order 10 VLOCs for charter with Brazil’s mining giant Vale.