On July 17, China Merchants Energy Shipping (CMES) issued an announcement stating that CMES intends to sign a “Shipbuilding Agreement” with a subsidiary of its affiliate, China Merchants Shipbuilding Industry, through an offshore single-vessel company established by its wholly-owned subsidiary, to build six new-generation, energy-efficient, and environmentally friendly 343,000 DWT-class very large ore carriers (VLOCs).
According to the announcement, the total investment for this batch of new vessels is expected to not exceed 4.93 billion yuan (approximately $727 million); based on this figure, the cost per vessel is estimated to be no more than approximately 821.6 million yuan. The vessels are scheduled to be delivered in stages between 2029 and 2030.
CMES stated that this batch of new vessels is intended to moderately expand and optimize the fleet’s vessel types and age structure. The vessels are intended for use under long-term shipping agreements (COAs) to consolidate and deepen cooperation with major clients, enhance supply chain resilience, and improve the market competitiveness and sustained profitability of the company’s dry bulk fleet.
CMES emphasized that, given that the amount of this related-party transaction, combined with the cumulative amount of related-party transactions with the same related party (China Merchants Group and its subsidiaries) over the past 12 months, has exceeded 30 million yuan and accounts for more than 5% of the company’s most recent audited net assets, this related-party transaction must still be submitted to the company’s shareholders’ meeting for deliberation in accordance with the provisions of the Shanghai Stock Exchange Listing Rules.
Previously, on July 10, CMES issued an announcement stating that it intends to sign a “Shipbuilding Contract” with a shipyard affiliated with China Merchants Shipbuilding through an offshore single-vessel company established by its wholly-owned subsidiary. The contract covers the construction of one 210,000 DWT Newcastle bulk carrier and four 1,800 TEU container ships, with the total investment for the project expected to not exceed 1.51 billion yuan. Delivery is scheduled for 2028.
So far this year, CMES has announced orders for multiple types of vessels, covering the mainstream commercial shipping market, including container ships, bulk carriers, and oil tankers.