China Merchants Energy Shipping (CMES) announced that its wholly-owned subsidiary, Hong Kong Ming Wah Shipping Co., Ltd., recently signed a long-term transportation agreement with a client for six Very Large Ore Carriers (VLOCs). The agreement covers a 25-year term, with a total contract value estimated at no less than US$2.8 billion.
The announcement notes that the long-term charter agreements for this batch of VLOCs were initially disclosed in July 2026. On July 21, CMES announced that Hong Kong Ming Wah Shipping intended to enter into a long-term transportation agreement with a China Mineral Resources Group International Supply Chain Co., Ltd. holding the maritime transport rights for Simandou ore products. On July 28, CMES convened the first meeting of its eighth Board of Directors, during which the Board authorized Hong Kong Ming Wah Shipping to sign 25-year long-term transportation agreements for VLOCs with the client.
The Board of Directors of CMES considers the 25-year long-term shipping agreement signed by Hong Kong Ming Wah Shipping to be a crucial first step in its deep involvement with the Simandou Project. This agreement lays a solid foundation for establishing a close, mutually beneficial, and long-term partnership between the parties. It aligns with CMES’s development strategy, fosters the organic growth and quality enhancement of the company’s dry bulk fleet, boosts its market competitiveness and sustained profitability, and represents a significant move toward the company’s sustainable development.
The Simandou project is a large-scale, high-quality open-pit hematite mining operation located in the Kérouané Prefecture of southeastern Guinea, West Africa. Proven reserves of high-grade iron ore (with an iron content exceeding 65%) currently stand at approximately 4.4 billion tonnes, and the project is designed for a total annual production capacity of 120 million tonnes upon completion. It is being jointly developed by the Government of Guinea, SimFer, and the Winning Consortium Simandou. The project officially commenced production and began shipping iron ore in November 2025.
Records indicate that Hong Kong Ming Wah Shipping was established in January 1980 as a specialized dry bulk shipping management company under CMES, with shipping routes spanning the globe.