At least 10 large tanker orders

Shandong Marine is in talks with Shell to sign oil tanker leases for Shell's "Project Solar" Project and will build a series of up to 16 (10+6 alternative) mr-class tankers for the Project, sindh maritime net reported on March 19.

According to xinde maritime network, shandong Marine has signed a seven-year (expandable) lease with Shell for these ships. After holding the lease, it will seek for the shipping capacity, which is in line with shandong Marine's consistent prudent business strategy.

Late last year it emerged that shell was making inquiries for MR product tankers and handysize chemical tankers, possibly including 30 new ships, in a deal worth more than $1.2 billion.

Earlier this year, new shipbuilding sources said shell was seeking as many as 16 portable chemical carriers for Project Solar, including 10 confirmations and six alternatives.

Subsequently, it was reported that ICBC financial leasing held talks with xinshidai shipyard about more than 10 IMO II MR oil tankers.

Further details on the price and charter are pending.

Steady operation of shandong shipping

On nov 15, 2018, shandong Marine signed a long-term lease with Germany's rheinland group co LTD, one of Europe's largest energy groups, for 10 dry bulk cargo ships with 180,000 deadweight tons in Qingdao. During the lease period, shandong Marine will transport 150 million tons of coal and other bulk raw materials for rwe. The project by the sea in shandong, Germany's rwe, bocom lease, waigaoqiao shipbuilding, HuaChen leasing joint collaboration, ceremony on the same day, bocom lease and waigaoqiao shipbuilding build agreement signed 10 dry-bulk vessels, shandong shipping with bocom lease, HuaChen lease rent contracts signed 10 dry-bulk vessels light, three copies of the contract total amount more than $1.9 billion.

On January 15 this year, big ship group and avic international leasing co., ltd. signed a contract for the construction of 10 85,000 DWT bulk carriers in dalian. It is worth mentioning that the ships will eventually be leased to the new sincere shipping company. The company is a subsidiary of shandong shipping in Singapore, a joint venture between shandong shipping and hengyue, specializing in the dry bulk transport business of panamax and camsa ships.

As can be seen from the above, shandong shipping pursues a prudent business strategy and does not acquire the shipping capacity speculatively. All the shipping capacity is rented in cooperation with the leasing company under the endorsement of a long-term lease, ensuring the stability of the company's profits. In addition, in terms of project operation, shandong Marine also operates relevant projects in an asset-light way by integrating various high-quality resources of terminal customers, financial institutions and shipbuilding enterprises.

Preparing for overseas listing

It is worth mentioning that on March 18, shandong shipping issued a "proposed announcement on the termination of the listing of the company's shares in the national sme share transfer system".

It said in the announcement that according to the company's strategic development plan and the needs of follow-up capital operation, in order to better promote the company's overseas listing, it plans to apply for the termination of the listing of the company's shares in the national sme share transfer system.

Shandong shipping was officially listed on the new third board on January 12, 2016. The company is a large state-owned enterprise approved by the people's government of shandong province and initiated by shandong ocean group co., ltd. as the controlling shareholder, with a registered capital of 3 billion yuan. The company focuses on the Marine transportation field of minerals, grain, energy, chemicals, sundries and other bulk materials, with routes covering major ports all over the world.