On January 20, China Merchants Energy Shipping (CMES) announced that it plans to sign a Shipbuilding Agreement through its wholly-owned subsidiary with a subsidiary of its affiliate China Merchants Industry Holdings. The agreement involves the construction of four 3,000 TEU conventional fuel container ships equipped with desulfurization towers. The total investment for the project is expected to not exceed RMB 1.324 billion (approximately US$190 million).
As both CMES and China Merchants Industry are controlled by China Merchants Group, this transaction constitutes a related-party transaction and must be submitted to the shareholders’ meeting for review.
CMES stated that ordering new vessels from related parties represents a necessary measure to advance the optimization of its container shipping fleet structure and upgrade route capacity. The subsidiary company under CMES offers earlier delivery dates, more favorable construction terms, and assured building capabilities, resulting in the most favorable overall comparison. This transaction aligns with the company’s strategic planning and the development needs of its container shipping business, serving the long-term interests of the company and all shareholders.
According to the announcement, the new vessels are scheduled for delivery and entry into service between 2027 and 2028. They will be deployed to enhance the capacity and optimize the structure of existing routes, thereby improving loading capacity and operational efficiency. This initiative aims to strengthen the competitiveness and service capabilities of the container shipping business in the market.