With state-owned enterprises restructuring, China Merchants Energy Shipping (CMES), one of leading ocean energy transportation enterprises, began its transportation capacity raising.

In January 2010, MV NEW PARADISE, the VLCC built by Japan’s Sumitomo Group, was delivered to CMES. Meanwhile, another two monsters built by Dalian Heavy Industry, namely MT KAIYUAN (凯源) and MV MINGYUAN (明源), were delivered successfully as well.

MV NEW PARADISE is the fourth double bottom VLCC tanker ordered by CMES in Japan while MV MINGYUAN is the first newly-built Capesize bulk carrier in CMES’s fleet since 13 years ago.

The representative of CMES said that the delivery and operation of the three monsters would raise the fleet transportation capacity rapidly, rising by 780,000 dwt.

So far, CMES have owned the largest tanker fleet in China, including ten 300,000-dwt VLCC tankers.

Moreover, two more 300,000-dwt VLCC tankers, one 110,000-dwt ULCC tanker and three 180,000-dwt Capesize bulk carriers are on order for CMES, scheduled to be delivered in 2010.

Besides, MT DAPENG STAR, CMES’s fifth LNG carrier, was delivered on December 10th 2009. The funds of the five LNG carriers were all collected by IPO ways. They would be put into the operation of LNG transport between Guangdong and Fujian Province.

In China, the LNG transport business is monopolized by national enterprises such as CMES, COSCO and CNOOC. In recent years, the LNG demand in China’s coastal areas is becoming larger. CMES’s LNG fleet will play a key role with sustainable benefits in the future.

CMES is a subsidiary enterprise of China Merchant Group, whose business covers ocean oil, LNG and dry/bulk cargo transport.

The company ranks 4th in China’s state-owned shipping enterprises. It’s smaller than compatriot rivals such as COSCO, CSD and CSC but its history may date back to the late 19th century. CMES is recognized as the earliest state-owned shipping enterprise in China.

Despite its outstanding performances recently, CMES’s future is still unknown. Chinese government usually reserves just three state-owned enterprises at most in each industry. CMES’s behaviors are considered to compete with the other three giants for survival.

In the next two years, CMES’s oil transport capacity is expected to increase to 1.61m dwt, increasing by 50.16%. With another seven Capesize bulk carriers putting into use in future, the company’s dry/bulk cargo transport capacity will be raised to 1.98m dwt, jumping by 283%.

Survival or disappearing? Who knows?

Source: Asiasis

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