Höegh Autoliners inks deal to move construction equipment on its RoRo vessels
While limited by certain vessel characteristics, more and more market players are turning to the High & Heavy divisions at major RoRo operators for the transport of their breakbulk and project cargo. A Japanese construction equipment manufacturer has contracted Höegh Autoliners for the transport of construction equipment from Asia to Europe.
Höegh Autoliners said the deal has a term of five years with its Aurora class vessels currently, under construction, expected to feature significantly in the deal. While the exact price tag of the deal was not disclosed, the company said its mutual rate and volume commitments exceeded a total value of $100 million.
Commenting on the agreement, Andreas Enger CEO of Höegh Autoliners said, “Committing our capacity and building long-term relationships with strategic customers in main trade lanes is our priority. Our vessels are built with a substantial High & Heavy capacity, and we are delighted to be the chosen partner for the transport of construction equipment for this major producer.”
“The Aurora class vessels, currently under construction and scheduled for delivery from 2024 and onwards, will feature a significantly enhanced capacity for High & Heavy cargo. When the new vessels are delivered, our customers will reap the benefits of transporting their cargo with industry-leading vessels that boast the lowest carbon footprint in the industry. We are happy to build a solid contract backlog with major OEM’s and H&H customers that support our investments in highly sophisticated new vessels,” Enger said.
Aurora Class RoRo newbuilds
The Aurora vessels will have DNV’s ammonia and methanol-ready notation, with the main engine provided by MAN and the bridge system supplied by Kongsberg. The vessels will be the first in the PCTC segment able to operate on zero-carbon fuels. Together with the capacity to carry up to 9,100 cars, the Aurora class will be the world’s largest and most environmentally friendly car carrier, according to the company.
The company has also reached an agreement with CMHI that allows it to accelerate its green fleet renewal program from 12 to 16 Aurora vessels.
The Aurora-class vessels have attracted significant interest from credit providers, and the company will finance the newbuilds with a combination of equity (cash) from its own operation and debt. Höegh Autoliners is actively exploring various financing alternatives and anticipates having committed financing in place before year-end.