Greater ChinaTankers

CMES admits rapid expansion is leading to HR woes

Shanghai: Shanghai-listed China Merchants Energy Shipping (CMES) has announced today that it might face a series of risks from its current fleet expansion plan.

CMES is currently planning a new share issuing to raise RMB2bn ($322.8m), which will be used to fund the construction of five VLCCs and six bulkers. The plan is pending approval from authorities.

CMES said its human resources and management levels might face difficulties to meet the demand from the fast fleet expansion of the company and it could constrain the company’s developments.

CMES has completed the takeover of 19 second-hand VLCCs and acquisitions of four VLCC newbuildings through its 51% controlled subsidiary China VLCC, which currently operates a fleet of 32 VLCCs.

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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