Sheng Hang Shipping Co., Ltd. (hereafter "Sheng Hang" or "the company") announced on the evening of August 31st that its board of directors has approved a plan to construct six new vessels. The decision was made during the 39th meeting of the company's fourth board of directors, covering the construction of six 13,500 deadweight tonnage stainless steel chemical/product oil tankers.
The company intends to sign a shipbuilding contract with the Nanjing Shipyard of China Merchants Group. The total contract value for all six vessels, inclusive of tax, is set at RMB 994.8 million, with each vessel carrying a price tag of RMB 165.8 million. This brings the total investment scale to nearly 1 billion yuan.
According to the announcement, this investment is a key measure for the company to implement its long-term strategic development plan, optimize its fleet capacity structure, and proceed with the orderly replacement of its aging fleet. The new vessels will feature cargo tanks made of duplex stainless steel and will be equipped with 14 cargo holds. Designed with a single-pump and single-pipeline system for each tank, these ships can carry up to 14 different types of cargo simultaneously, meeting the practical demands of clients who require transportation of high-end fine chemical products.
Once these vessels are built and in service, they are expected to continuously improve the company's capacity structure, facilitating a shift toward a younger, more sophisticated, and more specialized fleet. Per the terms of the contract, the six vessels will be delivered in batches, with the delivery schedule stretching from August 31, 2028 to October 31, 2030. The payment plan is structured according to project milestones: 10% upon contract signing and effectiveness, followed by 20% at the start of construction, 30% upon keel laying, 20% at the launch stage, and the final 20% upon delivery. The contract becomes effective once signed and stamped by the legal representatives or authorized agents of both parties.
Sheng Hang stated that the decision to build these ships comes after a thorough analysis of the increasingly stringent regulatory requirements for aging vessels in the chemical shipping market. The company also considered future vessel type trends in the chemical transportation sector, alongside relevant policies from the Ministry of Transport concerning capacity controls for domestic chemical shipping and the replacement of older vessels. This investment, funded through the company's own resources and self-raised funds, was implemented after comprehensive evaluation and prudent deliberation. The firm will plan its future capital expenditure carefully by considering several factors, including the supply-demand dynamics of the transport market, industrial policies, the pace of capacity replacement, and the timeline for ship construction and delivery.