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Home News MPC Container Ships orders two carbon-neutral 1,300 TEU vessels for US$78 million

MPC Container Ships orders two carbon-neutral 1,300 TEU vessels for US$78 million

MPC Container Ships (MPCC) has contracted two carbon-neutral 1,300 TEU newbuildings at Chinese-based shipyard Taizhou Sanfu Ship Engineering.

The delivery of the vessels is expected in the second half of 2024. The two boxships will be equipped with a dual fuel engine setup that enables operation on methanol as well as conventional MGO.

MPCC said that the two container ships come with 15-year time charters to North Sea Container Line AS (NCL), backed by CoAs from various parties, including a 15-year CoA with Norwegian industrial group Elkem ASA.

The contract price is US$39 million per vessel and is covered by the contracted cash flows from the 15-year time charter with NCL at an initial rate of €16,30/day, before inflationary adjustment mechanisms.

“Together with our partners NCL and Elkem, this project allows us to set up a green transportation corridor in Northern Europe, proving our ability to identify and execute on opportunities that are accretive whilst allowing us to make the right move towards a further decarbonisation of the fleet,” commented CEO of MPCC, Constantin Baack.

The transaction will provide earnings visibility into 2040 supporting MPCC’s distribution policy, with no negative impact on expected distributions in 2022/2023, according to the company’s statement.

MPCC will be the major owner of the vessels (90.1%) with Topeka MPC Maritime AS holding the remaining 9.9%. Topeka MPC Maritime AS is a joint venture between Topeka Holding AS (zero emission shipping company owned by Wilhelmsen Group) and MPC Capital AG.

Baack added that MPCC believes that regional container trades with their specific features such as predictable trading profiles and manageable investments in fuel infrastructure will likely become the first truly green shipping trades.

“With the most recent US$71 million dividend payment, MPCC has year to date 2022 distributed a total of US$271 million to its shareholders, emphasising our strong commitment to returning capital to investors, which will remain our key priority going forward,” noted Baack.





Antonis Karamalegkos
Managing Editor

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