Shanghai-listed China Merchants Energy Shipping (CMES) is investing USD 381.9 million in Marshall Islands-incorporated VLOC Maritime Holdings Limited, a company controlled by ICBC Financial Leasing Co., Ltd, specializing in VLOC ownership.

Under the deal, CMES will take 30% stake in the company which has fourteen Valemaxes, four already trading and ten more on order worth USD 1.27bn.

The ten 400,000 dwt VLOCs are intended to transport iron ore from Brazil to China under a recently sealed deal with Brazilian mining conglomerate Vale. Under the COA, ICBC will transport about 16 million tons of iron ore annually for Vale from Brazil to China starting from the first half of 2018.

Six Valemaxes are to be built by China’s privately-owned Yangzijiang Shipbuilding whereas the remaining four VLOCs are to be constructed by China Shipbuilding Industry Corporation.

The ships are to start their respective deliveries from 2018.

The cooperation agreement, which was signed on May 30, 2016 in Beijing, is still subject to internal approval procedures on both sides.

Chinese shipping companies Cosco Group, China Merchants Group and ICBC Financial Leasing Co. have together stacked up orders for 30 Valemax ore carriers worth a total of USD 2.5 billion at local yards.