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U-Ming orders ‘LNG-ready’ VLOC pair from Chinese yard

02 Feb 2018

U-Ming Marine Transport (Singapore) Private Limited, a subsidiary of Taipei-based U-Ming Marine Transport Corporation, has ordered a pair of 325,000 deadweight tonne Very Large Ore Carriers (VLOC) from China’s Qingdao Beihai Shipbuilding Heavy Industry.

The vessels will be built with a “LNG-Ready” design that allows the installation of liquefied natural gas (LNG) bunker tanks at a later period for future dual-fuel vessel operations; the newbuilds are scheduled for delivery in 2020.

Each vessel will be equipped with a state-of-the-art an eco-efficient main engine, a scrubber system, digital optimisation systems, and comply with the International Maritime Organization (IMO) upcoming 2020 sulphur cap of 0.5%.

The decision to build the "LNG-ready" VLOCs come after confirmation of a 25-year Contract of Affreightment (COA) contract between U-Ming and Vale International SA of Switzerland on Wednesday.

The COA is the biggest and longest commitment in U-Ming’s history and the total contract value is anticipated to be more than $600 million with a bunker adjustment clause.

“U-Ming Marine Transport has long-term relationships with major mining companies around the world and its proven track record of providing reliable transportation services is evident among its international customer base,” says a spokesperson.

“The signing of this long-term contract has further enhanced the cooperation and relationship between Vale International SA and U-Ming.

“The COA will commence in 2020 until 2045 for transporting Brazilian iron ore to China. We have been able to secure a bigger portion of long term charters with stabilised revenue and profit for the company.

“This COA is contracted to meet the iron ore demand growth especially in China and other developing countries; and with U-Ming’s prudent management and customer service oriented vision to create a win-win for both parties.”

Published: 2 Feb, 2018
 

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