The Finnish MPP and shortsea shipping company ESL Shipping is stepping on the gas with its fleet renewal: at least four newbuildings are being ordered in China, which will be larger than the last series of newbuildings: 17,000 dwt.
As ESL recently announced, €186m will be invested in the current series. The shipping company, which is part of the Aspo Group, had already made some recent moves to improve its fleet: Two Supramax freighters were sold, a large series of a dozen 5,350-tonne vessels was initiated for the subsidiary AtoB@C – delivery is still ongoing. There is still great demand for modern tonnage in both the deepsea MPP and shortsea markets; the fleets are comparatively old and the order book comparatively small.
The sales and additional fresh money from the capital market were intended to create free capacity for “green” ships. Apparently with success, as the order announced recently shows. In February, ESL also confirmed an equity injection of €45m. “In connection with the ship order, the possibilities of using various ship ownership and financing solutions to accelerate business growth and expand the service are being examined,” it said today. This may include pooling as a financing instrument, which has already been used by ESL Shipping to finance the hybrid coastal motor vessels.
4 x 17,000 dwt for ESL
A total of four 17,000-tonne vessels – also developed with the Finnish design office Deltamarin – were contracted with China Merchants Jinling Shipyard. Deliveries are scheduled between the third quarter of 2027 and the first quarter of 2028.
“These new 1A ice-class vessels are at the forefront of the market in terms of cargo capacity, technology and innovation,” said ESL. According to the information, there is also an option to extend the order “by several ships”.
The competitiveness of these next-generation vessels is based on “increasing customer preference for fossil-free freight solutions over time”, market-leading energy efficiency, efficient and flexible cargo space design and lower operating costs. The new ships can be operated fossil-free by using e-methanol based on green hydrogen or biomethanol.
“Our strategy is based on our leadership in sustainability and our ability to develop and deliver reliable infrastructure for the ice-bound Nordic green transition industries. We have developed these multi-fuel vessels in close cooperation with our industry partners,” said Mikki Koskinen, Managing Director of ESL Shipping.
Most of the key equipment such as the propulsion system including the battery hybrid propulsion, cargo handling equipment and “many other leading technologies” are said to come from European companies.
“This investment is fully in line with Aspo’s portfolio vision and financial ambitions announced at Aspo’s Capital Markets Day on 14 May 2024. This investment in fossil-free handysize vessels is a natural step after the ongoing investment in low-emission hybrid coasters has proven to be very successful,” says Rolf Jansson, CEO of Aspo and Chairman of the Board of Directors of ESL Shipping.
Flexible deployment options
A Deltamarin statement on the newbuilds says the vessels are optimised for the major trade routes in the Baltic region and transatlantic crossings and can be flexibly deployed on Great Lakes in the United States and Canada: “They are designed for exceptional adaptability and can carry virtually any type of cargo, including containers, bulk, project cargo, lumber and paper products.”
The bridge is arranged in the bow area so that long project cargoes can also be transported beyond the stern, as is the case with several newbuilding projects in the global market. Mixed loads can also be transported thanks to the integration of tween decks. Neither ESL nor Deltamarin provided detailed information about the crane capacity.
Dimensions of the ESL newbuildings
- Load capacity (dwt): 17,000 t
- Length: 150 m
- Width: 23.77 m
- Draft: 8.6 m
- Ice class: 1A
