Fleet operator and manager SFL Corporation has entered into long term charters with a leading Asia-based transportation company for two ultra-modern dual-fuel car carriers, designed to use liquified natural gas (LNG).
The vessels are sister vessels of the two 199m 7,000 CEU Pure Car and Truck Carriers Wolfsburg and Emden under construction at China’s Guangzhou Shipyard International in Nansha and chartered to the Volkswagen Group. Scheduled delivery from the shipyard for the new pair is in Q1-Q2 of 2024.
The aggregate construction cost will be approximately $155 million, and the charter period will be ten years from delivery of the vessels, adding more than $200 million to the company’s charter backlog.
Ole B. Hjertaker, CEO of SFL Management, said in a comment, “This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty. Over the last few months, we have added multiple new vessels to our portfolio, increasing our charter backlog by more than $700 million. Many of these acquisitions will deliver during the third quarter, adding immediate cash flow and building our long-term distribution capacity.”