China Merchants joins ICBC Leasing on VLOC project

China Merchants joins ICBC Leasing on VLOC project

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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