On July 25, Higo Shipping Co., Ltd. (hereinafter referred to as “Higo Shipping”) issued an Announcement on the Purchase of Assets (a 14,000 DWT new energy container ship).
The announcement states that Higo Shipping, in line with its overall strategic deployment of shipping capacity, intends to enter into a Shipbuilding Contract with Hunan Jinhang Shipbuilding Co., Ltd. (hereinafter referred to as “Jinhang Shipbuilding”). Higo Shipping intends to invest no more than RMB 56 million in its own funds for Jinhang Shipbuilding to construct a LNG (liquefied natural gas single-fuel) powered river-sea direct container ship with a capacity of 1,052 TEU/14,000 deadweight tons for the company.
The construction cost of the ship, the payment method and timing of the construction payment, and the delivery date shall be subject to the construction contract to be signed.
Higo Shipping stated that the company actively responds to the national policy of promoting the transformation and upgrading of ships to new energy and clean energy, in line with the development of green shipping and contributing to the achievement of the dual carbon goals.
The purchase of new energy ships is based on the company’s business development needs, meets the company’s production requirements, significantly enhances the company’s transport capacity, reduces operating costs and energy consumption through the upgrade of large-scale ships, improves the company’s competitiveness, and has a positive impact on the company’s long-term development.
In addition, Higo Shipping also issued the “Announcement on the Sale of Assets (Dismantling of Old Ships)”. In order to respond to China’s policy of encouraging the scrapping and renewal of old operating ships and promote the transformation and upgrading of ships to new energy and clean energy, the company plans to dismantle five of its own old ships that meet the dismantling age requirements, including “Yuanhai No. 1”, “Yuanhai No. 3”, “Yuanhai No. 6”, “Yuanhai No. 8” and “Yuanhai No. 9”.
The total book value of the five vessels to be dismantled is RMB 5.76 million.