China Merchants Energy Shipping (CMES) has announced that its fully owned subsidiary China VLOC Investment has signed an agreement with VLOC Maritime Holdings (VMH), a subsidiary of ICBC Leasing, to jointly invest in VLOC projects.
According to the agreement, China VLOC Investment will invest $381.9m into VMH’s subsidiary VLOC Maritime Marshall (VMM) to acquire a 30% equity share in the company.
VMM has acquired four second hand VLOCs and secured a COA from Vale in April this year and also ordered ten additional VLOCs shared between CSIC and Yangzijiang Shipbuilding. The COA, which covers a period of 27 years will see the company transport about 16m tons of iron ore for Vale each year.
CMES also signed a COA with Vale in March and ordered 10 VLOCs at three domestic yards. CMES said the investment is in line with the company’s future development strategy.