CMES Confirms Order for 10 VLCCs
By Aiswarya Lakshmi
Tuesday, December 8, 2015
The board members of China Merchants Energy Shipping (CMES) has approved of a plan to order an additional 10 eco-friendly VLCCs.
These vessels will be operated by CMES’ Hong Kong-based subsidiary, China VLCC Company Limited, a tanker JV between CMES and Sinotrans & CSC Group. China VLCC was set up in early September, will be in charge of vessel operation.
CMES added that it would disclose more details on the announcement once the contracts on construction of the energy saving tankers are signed. Potential value of the deal is expected to reach around USD 920 million.
China VLCC currently operates a fleet of 34 VLCCs, with an additional nine on order. In October, it sold VLCCs New Medal (297,600 dwt, built 2009) and New Founder (297,400 dwt, built 2008) to Greece’s Navios for $133m.
Affiliated to China Merchants Group, CMES was jointly established by Sinopec Group, Sinochem Group, COSCO Group and CNOOC Group on 31 Dec 2004 based on the integrated ocean shipping assets under China Merchants Group.
CMES operates and manages the earliest and most experienced oil tanker and bulk carrier fleet and is one of the largest energy transportation enterprises in China.