By hannover-web.com On October 15th, a significant signing ceremony for the Northeast’s first cross-border ship finance leasing project took place in Dalian, Liaoning. Taiping Petrochemical Financial Leasing, Sinopec Fuel Oil, and Dalian COSCO Shipping Heavy Industry signed a construction contract for two 49,900 deadweight ton product tankers, with a total value of $90 million.
Ship financing has long been a challenge for many shipping companies, and ship finance leasing stands out as one of the more effective solutions. Essentially, ship finance leasing involves lessors purchasing vessels from shipyards based on specific requirements provided by lessees and then leasing these vessels to them, allowing lessees to pay rent in installments.
The project, signed during the ceremony, will be managed by Taiping Petrochemical Financial Leasing through a newly established company in Dalian’s Dayaowan Free Trade Zone. Sinopec Fuel Oil Sales Company’s Singapore branch will act as the lessee, facilitating the operational leasing of two MR-type oil tankers (medium-range product tankers). Dalian COSCO Shipping Heavy Industry will oversee the construction of the vessels, each valued at approximately $45 million, with completion expected by 2027.
Liang Yanfeng, Chairman of COSCO Shipping Heavy Industry, stated that this first cross-border ship finance leasing project in Northeast China exemplifies a successful collaboration between government and enterprises, as well as the integration of industry and finance. Once completed, the two product tankers will be utilized by Sinopec Fuel Oil Company for transporting refined oil throughout Southeast and South Asia.
Sun Xinzhi, Deputy Director of the Dalian Free Trade Zone Administration, remarked that the cross-border ship finance leasing project holds significant practical implications for creating a more competitive shipbuilding industry cluster. Moving forward, the Dalian Free Trade Zone plans to expand financial leasing services in the fields of aviation, shipping, equipment manufacturing, and marine engineering, aiming to accelerate the growth of the financial leasing sector within the area.
