Four clean energy dry bulk carriers to be built Contract value over RMB 250 million
(June 2023, Hong Kong) — CIMC Enric Holdings Limited and its subsidiaries (collectively, “CIMC Enric” or “Company”) (Hong Kong stock code: 3899.HK) are pleased to announce that Nantong CIMC SinoPacific Offshore & Engineering Co., Ltd. (“SOE”), a subsidiary of the Company, signed a contract in Shanghai with CSC Bulk Shipping Co. Ltd (“CSC Bulk Shipping”) for the construction of four 12,500-ton clean energy river-sea through dry bulk carriers. The contract value exceeds RMB 250 million. Through strategic cooperation, both parties aim to actively promote the substantial implementation of the “Gasification of Yangtze River” initiative, contributing to the green upgrading of inland river shipping. This project will further enhance SOE’s construction capabilities and market layout for clean energy-powered vessels.
The vessel represents a next-generation, domestic clean energy river-sea through dry bulk carrier. It can sail in the domestic offshore navigation area and ports in the middle and lower reaches of the Yangtze River and below, with each carrier equipped with a dual-fuel main engine and one propeller. Notably, the first vessel in this project will be the pilot utilization of the LNG marine tank-swap solution advocated, developed and supplied by CIMC Enric and approved by the Ministry of Industry and Information Technology (MIIT) for the first time in the Yangtze River offshore.
By the end of 2021, there were about 114,000 inland vessels in China, with the majority still powered by diesel engines and requiring renovation or replacement to achieve “ecological priority and green development”. In response, five departments including the MIIT and the National Development and Reform Commission jointly issued the “Implementation Opinions on Accelerating the Green and Smart Development of Inland Waterway Vessels”. By 2030, the target is to fully promote the application of green and intelligent technologies for inland waterway vessels, improve the industrial ecology in supporting infrastructure, operation and management, and business models, and achieve bulk construction of standardized and serialized green and intelligent ships.
The Yangtze River is the largest shipping artery of China's inland waterways, with an annual transport volume of up to 3 billion tons, accounting for more than 60% of the total inland waterways. "Gasification of the Yangtze River" and "2030 green intelligent standardized ships" are important measures to practice the concept of green development, promoting ecological protection and high-quality development of Yangtze River shipping.
CSC Bulk Shipping is a wholly-owned subsidiary of China Yangtze Shipping Group Company Limited (“CSC Group”), and has long played a pivotal role as a state-owned enterprise in transporting bulk cargoes on the Yangtze River. They are deeply involved in the Yangtze River economic zone and renowned as the “National Team of the Yangtze River”. Their dry bulk cargo transportation operations cover main stream and tributaries of Yangtze River transportation, direct river and sea transportation, coastal, domestic and foreign cargo transportation, as well as special transportation. Their scale and efficiency rank among the industry leaders.
CIMC Enric has been actively supporting the green upgrading of the Yangtze, Pearl and Xijiang rivers through its clean energy equipment manufacturing, technological innovation and comprehensive integrated solutions. This includes providing integrated solutions for oil-to-gas vessel conversion, demonstrating LNG shore-based refueling projects, researching and developing tank-swap and refueling technologies, and constructing energy-saving, environmentally friendly and professionally customized liquefied gas transportation and clean energy ships. In 2022, the Company received over 120 orders for oil-to-gas conversion vessels , successfully delivering 78 of them. The current endeavor in the “Gasification of the Yangtze River” project further solidifies the SOE’s position as a leading player in the global market for small and medium-sized gas transport vessels, LNG fuel application equipment and bunkering vessels. The contract signing for the clean energy dry bulk cargo carriers project will enhance its construction capabilities for LNG ships and clean energy river-sea through ship types in the inland river markets, establishing a strong foundation for green ship development in these areas.
Mr. Gao Wenbao, Vice President of CIMC Enric and General Manager of SOE, commented, “Recently, SOE has achieved remarkable success in the small and medium-sized liquefied gas vessels, clean energy container vessels, and river-sea through ships, reflecting the increasing market demand for green shipping. CIMC Enric will continue to contribute to the research, development, and application of intelligent technologies such as LNG tank-swap and bunkering, the construction of supporting facilities for green and intelligent vessel operations, and the standardized design and manufacturing of green and intelligent vessels. Together with its partners, the Company will promote the transformation and upgrading of green shipping and help achieve the dual carbon goals.”
