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South Korean shipping company HMM Co. announced that it secured a long-term maritime transport contract worth 4.7 trillion won (USD 3.5 billion) with Brazilian mining company Vale.
Under the agreement, HMM will transport bulk cargo for Vale using eight newly built vessels, which will be delivered successively starting in 2030 and will operate under 25-year contracts.
This is the third major contract HMM has signed with Vale, following two long-term maritime transport agreements, each for 10 years, signed in May and September of last year, whose combined value reached 1.1 trillion won, according to South Korean news agency Yonhap.
The eight 210,000-ton capacity Newcastlemax bulk carriers will be equipped with the world's first triple-fuel propulsion engines, capable of operating on methanol, ethanol, and conventional fuel oil.
The vessels will also be ready to operate with LNG and ammonia, allowing them to be converted to use liquefied natural gas or ammonia as fuel in the future.
Likewise, they will incorporate technologies aimed at reducing their environmental impact, including rotor sails that harness wind energy to support propulsion, contributing to improved fuel efficiency and reduced carbon emissions.
The agreement is part of HMM's efforts to strengthen its bulk transport business and diversify its portfolio beyond its core container shipping operations.
HMM's bulk carrier fleet increased to 61 vessels during the first half of this year, up from 44 at the end of March last year.
