A Bermuda-based subsidiary of Siem Industries Group (SFL Corporation) has signed a ten-year charter agreement for two LNG-fuelled pure car and truck carriers with a leading Asia-based transportation company.
The two 7,000 car-equivalent unit (CEU) dual-fuel newbuildings are expected to be delivered in Q1-Q2 2024. According to an SFL statement, the two PCTC vessels will be sister vessels to Siem Car Carriers' two dual-fuel PCTC newbuildings, Siem Confucius and Siem Aristotle, which are currently on long-term charter to Volkswagen Group. The first two vessels in the series were constructed by Fujian-based Xiamen Shipbuilding Industry.
With main dimensions of 200m length and 38.0m breadth, the vessels are likely to retain the high-pressure, low-speed two-stroke dual-fuel main engine, and dual-fuel genset drives installed aboard sister vessels Siem Confucius and Siem Aristotle.
The Motorship reported that the first two vessels in the series were expected to reduce CO2 emissions by up to 25%, NOx by up to 30%, and particulate matter by up to 60%, as well as virtually eliminating SOx compared with earlier generations of PCTC vessels operating on HSFO.
The order marks a further expansion of the use of LNG-fuelled vessels for deep-sea vehicle transportation, as well as intensifying interest from Asia-based transportation companies.
Ole B. Hjertaker, CEO of SFL Management AS, welcomed the award of the ten-year time charter, adding “This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty." The aggregate construction cost will be approximately US$155 million.
