China inks Ethiopian MPP orders

Ethiopian Shipping Lines (ESL) is placing a newbuilding order at China’s Taizhou Kouan Shipbuilding. Sources say the national shipping company has inked a letter of intent for a series of multipurpose (MPP) vessels at the shipyard.

According to local reports, ESL is still waiting for state approval to go ahead with its order. “The deal may not be sealed until the end of this year or early next year,” said one source.

A source familiar with Taizhou Kouan says ESL is looking to place orders for seven 27,000-dwt MPPs for delivery in 2011. The price remains undisclosed but brokers think it will be over $30m each.

It is also reported that in addition to the MPP newbuildings, ESL is looking to order two 40,000-dwt products tankers. Ethiopia ships in more than 1.5 million tons of petroleum from the Middle East every year and ESL would like to play a role in shipping the cargo.