Eight vessels worth 6.5 billion! Hengli Heavy Industry Secures Another Order for Ultra-Large Ore Carriers.

To meet the transportation needs of the Simandou iron ore project, Singapore’s Velez International Group has increased its order for Very Large Ore Carriers (VLOCs) at Hengli Heavy Industry.

According to foreign media reports, following the initial order of six vessels last July, Weili International Group has now placed an additional order with Hengli Heavy Industry for two more Very Large Ore Carriers (VLOCs) with a deadweight tonnage of 325,000 tons, designed to be methanol-ready. The new vessels are scheduled for delivery in 2027 and 2028, respectively. While the exact prices have not yet been disclosed, last year’s initial order of six vessels from Weili International Group cost approximately between US$115 million and US$116 million each. Based on this estimate, the total cost for all eight vessels would reach US$928 million (about RMB 6.566 billion).

This batch of VLOCs adopts the “WinningMax” concept, pioneered by Weili International Group. Designed in collaboration with the Shanghai Ship Design Institute, these vessels are tailored to the characteristics of the sea trade in bauxite from West Africa to China and the entire logistics chain, in line with Weili International Group’s business philosophy of green and environmentally friendly development. Responding to the global trend toward energy conservation and carbon reduction, this new-generation vessel type—developed jointly with Hengli Heavy Industry—has received technical support and recognition from both the China Classification Society and DNV.

This vessel has a total length of 329.99 meters, a molded breadth of 60 meters, a molded depth of 30.50 meters, and a structural draft of 22 meters. Its cruising speed is 13.9 knots, and it meets the Phase III requirements of the Ship Energy Efficiency Design Index (EEDI). Compared to the Baltic Capesize vessels, the “WinningMax” is expected to reduce energy consumption per ton-mile by nearly 50%. Moreover, this vessel design is pre-configured for methanol fuel and equipped with a 12,000-cubic-meter methanol fuel storage tank. In the future, by using green methanol, it will be capable of achieving “zero-carbon” operation throughout its entire voyage, boasting remarkable features such as being “green, environmentally friendly, energy-efficient, and safe.”

It is understood that Weili International Group was founded in 2002 by Mr. Sun Xiushun and is headquartered in Singapore. It is a comprehensive multinational group integrating shipowning, shipping operations, maritime logistics, vessel management, mining development, as well as railway and port construction and operation. Through its branches in China, Guinea, Indonesia, and other regions, the group provides land-based logistics, maritime logistics, and deep-sea transportation services for customers worldwide, covering bauxite, alumina, nickel ore, iron ore, and general cargo.

Weili International Group boasts one of the largest bulk carrier fleets in Singapore and is currently the world’s largest maritime transporter of bauxite. Its fleet controls and operates more than 100 vessels, including a proprietary fleet of 43 Capesize bulk carriers with a total deadweight tonnage exceeding 8 million tons, placing its overall transport capacity among the top globally.

In 2014, Weili International Group, together with China’s Weiqiao Group, Shandong Port Group Yantai Port Group, and France’s UMS, formed the trilateral “Winning Consortium” (SMB-Winning Consortium) and entered Guinea to develop bauxite resources. In November 2019, the Winning Consortium Simandou, led by Weili International Group, exclusively acquired mining rights for Blocks No. 1 and No. 2 of the Simandou iron ore deposit in Guinea.

In November of this year, the Simandou iron ore project in Guinea officially began operations. This project is one of the world’s highest-quality and largest-scale mining ventures, with proven reserves totaling 4.4 billion tons and a full-capacity production output of 120 million tons per year. Following the commissioning ceremony on November 11, the first batch of 9,850 tons of high-grade lump ore from the Simandou iron ore project was loaded onto Weili’s self-propelled barge “Winning Max 1,” which then transferred the cargo to the bulk carrier “Winning Youth,” anchored approximately 20 nautical miles off the port of Marebaia.

Currently, Weili International Group is building a fleet of VLOCs based on the “WinningMax” concept to provide stable transport capacity for its involvement in the Simandou project. In addition to the eight vessels being constructed by Hengli Heavy Industry, Weili International Group also signed a contract with Qingdao Beihai Shipbuilding in 2023 to order two more “WinningMax”-type VLOCs. These 10 VLOCs will be delivered in phases: four in 2026, five in 2027, and one in 2028.

It is understood that Hengli Heavy Industry’s predecessor, STX Dalian, was once China’s largest foreign-invested shipyard and boasted the largest single shipyard in northern China. In January 2023, the first-phase project—“Ocean Factory”—developed by STX Dalian and revitalized by Hengli Heavy Industry, officially began operations. In the second year of full-scale operation, Hengli Heavy Industry gradually entered a phase of rapid development, successively achieving major milestones such as the early delivery of its first-built vessel, the successful delivery of its first engine, the launching of its first 306,000-ton VLCC, and the commencement of construction on various types of ultra-large vessels.

In January of this year, the second-phase project—the “Future Factory”—invested in by Hengli Heavy Industry with an investment of nearly 10 billion yuan, officially went into operation. The “Future Factory” focuses primarily on high-value-added green shipbuilding and advanced offshore engineering equipment manufacturing, including very large crude carriers (VLCCs), ultra-large liquefied gas carriers (VLGCs), ultra-large container ships, floating production storage and offloading vessels (FPSOs), floating offshore wind turbines, and drilling platforms. Once fully operational, Hengli Heavy Industry will be able to process 2.3 million tons of steel annually, produce 180 marine engines per year, and achieve full coverage of dual-fuel engines for LNG, LPG, methanol, and ammonia.

According to Clarkson’s data, including the latest orders, Hengli Heavy Industry currently has a total of 165 vessels on order, with a combined deadweight tonnage of 26.55 million tons. These include 78 bulk carriers, 35 container ships, 40 oil tankers, 4 very large ammonia carriers (VLACs), and 8 very large ore carriers (VLOCs). The delivery schedule extends as far as 2029.