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China Merchants Energy Shipping in ro-ro jv

roroport
China Merchants Energy Shipping (CMES) is forming a ro-ro shipping joint venture with a unit of China Merchants Energy Shipping (CMES) is forming a ro-ro shipping joint venture with a unit of Guangzhou Automobile Group.

Shenzhen CSC RoRo Logistics Company Limited, a wholly-owned subsidiary of China Merchants Energy Shipping, and GAC Business part of Guangzhou Automobile Group, that will jointly invest in the new company with a registered capital of RMB1.263bn. The two parties will hold 70% and 30% stake equity of the jv respectively.

CMES will also issue A-shares to raise up to RMB4.1bn ($610m) fund for fleet expansion, including the construction of four very large crude carriers (VLCC), two very large ore carriers (VLOC), two ro-ro vessels and ten VLCC scrubbers and debt repayments.

he company is confident that it is the right moment to invest in fleet expansion as the global energy consumption will keep increasing, the iron ore transportation demands is strong and the domestic ro-ro shipping market is growing steady.

Affiliated to China Merchants Group, CMES was jointly established by China Merchants, Sinopec, Sinochem, Cosco Shipping and CNOOC in 2004, which is the largest VLCC owner in China.

TAGS: Regions VLCC vloc