South Korean shipping company, Polaris Shipping is acquiring additional five 325,000 DWT Very Large Ore Carriers (VLOCs) from South Korean shipbuilding company, Hyundai Heavy Industries (HHI).
The yard revealed that the company had declared options worth USD 400 million that were part of its $800m September contract for ten VLOCs.
With the declaration for five more vessels, the contract between Hyundai Heavy Industries and Polaris Shipping will round up at USD 1.2 billion for 15 VLOCs to be built at HHI yards for Polaris.
Delivery of the first ten DWT bulker newbuilds from the batch is scheduled for 2021, however, delivery of the remaining five has not been disclosed.
The 15 newbuild ships measures 340m in length, 62m in width and 29.8m in height. They will be designed as eco-friendly ships applying LNG Ready design to meet environmental regulations and reduce fuel consumption, and equipped with a ballast water treatment system and a desulfurization equipment scrubber.
Polaris has ordered the vessels against long-term contracts of affreightment (COAs) of between 20 years and 25 years from Brazilian mining giant Vale.
Vale was said to have hired Polaris as one of the seven shipping companies awarded the long-term COAs. The other six companies being SK Shipping, Korea's Pan Ocean, H-Line Shipping, Korea Line Corp (KLC), China Ore Shipping (Cosco) and China’s ICBC Financial Leasing (ICBC FL).