China’s Rongsheng Heavy Industries announced today the delivery of a pair of 380,000 DWT Very Large Ore Carriers (VLOCs); one to Brazilian ore giant VALE SA, and the other to Oman Shipping Company. These two ships represent the 6th and 7th VLOCs to be delivered by Rongsheng this year and have been christened the Vale Hebei, and Vale Sohar respectively.
Another 4 VLOCs have been launched and are currently undergoing outfitting. By years end, Rongsheng hopes to deliver at least one or two additional ships to their respective owners.
Despite the ongoing challenges on the shipbuilding industry brought about by the global financial crisis and the European debt crisis, Rongsheng Heavy Industries’ delivery plan has not been readily impacted. After delivering a single VLOC last year, the Group has so far delivered 5 VLOCs this year. Company-wide, Rongsheng has delivered 15 vessels, represented a volume of approximately 3.14 million DWT, this year.
Rongsheng reports they have delivered 90 percent more capacity this year than last, however there’s no hiding the fact this shipyard hasn’t announced a single new ship order yet this year. In fact, their stock value is valued at around 12% of what it was worth back in November of 2010 when the shipyard first went public.
The VLOCs built for Vale and Oman Shipping adopt an environmentally friendly design to lower fuel consumption and reduce emission of SOx and NOx, while due to their economy of scale, their operating efficiency figures are better than most of the world’s existing ore carriers.
With its Energy Efficiency Design Index (EEDI) recorded at approximately 1.99 during sea trial, these VLOCs are in line with the low-carbon green product concept and meets the benchmark requirements on emission reduction set by International Maritime Organization (IMO) which will come into effect as of January 1 in 2013.