CMES Orders Six VLOCs for $727M in First Such Newbuilding Deal in 11 Years

Related-party deal with China Merchants Shipbuilding; six 343,000 DWT eco-VLOCs at RMB 4.93bn, for delivery in 2029–2030, as CMES accelerates fleet renewal across all segments.

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Skye Polly
Published 23:55

China Merchants Energy Shipping (CMES, 601872) said on July 17 it will build six new-generation very large ore carriers (VLOCs) through its wholly-owned overseas single-vessel subsidiaries.

The 343,000 DWT vessels will be built by shipyards under China Merchants Shipbuilding Industry Group, a related party under the same parent, China Merchants Group. Total investment is capped at RMB 4.93 billion (about $727 million), or roughly RMB 822 million per ship. Delivery is scheduled between 2029 and 2030.

This marks CMES's first VLOC newbuilding order in 11 years. The company's previous batch of 10 VLOCs was placed in 2015.

The new energy-efficient vessels will operate under long-term contracts of affreightment (COAs) to strengthen ties with major resource clients and boost supply chain resilience. Funding will come from internal cash and external financing, with payments staged according to construction progress.

The transaction, classified as a related-party deal, has cleared CMES's audit committee and independent directors and now goes to shareholders for final approval.

2026 newbuilding spree

The VLOC order is the latest in a busy year for CMES. The company has already placed orders for:

· 10 VLCCs at Dalian Shipbuilding (RMB 8.566 billion)
· 4 x 8,200 TEU methanol-ready boxships and 8 other container vessels
· 5 Aframax tankers and 1 Newcastlemax bulker

All deliveries are scheduled through 2030, giving CMES a clear fleet renewal roadmap across tanker, dry bulk and container segments.

 

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