Wallenius Wilhelmsen expands its fleet renewal program by ordering four LNG dual-fuel electric vessels and options to purchase eight more. This agreement is valued at approximately $1.5 billion and is set to begin delivery of these vessels from mid-2030.
Details of the agreement and vessel design
The Norwegian transport and logistics group Wallenius Wilhelmsen has recently signed an agreement with the Jinling shipyard in China to construct four LNG dual-fuel electric vessels with a capacity of 9,900 car equivalent units (CEU). This agreement includes options for four additional vessels in 2031 and four more in 2032. If all options are exercised, the total investment cost will reach approximately $1.5 billion.
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The vessels will be equipped with LNG dual-fuel engines and will be built to the Shaper class design of Wallenius Wilhelmsen, featuring movable decks, heavy ramps, and flexible cargo spaces capable of carrying passenger vehicles, trucks, and other equipment.
Impacts and goals of the fleet renewal program
This new order expands the company's fleet renewal program to 26 vessels, including options, and continues a newbuilding campaign that began in 2023. This campaign has been described as the largest in Wallenius Wilhelmsen's history.
Speaking on the matter, Xavier Leroi, the CEO of the company's transport services, noted that the company consistently sees attractive opportunities in the sectors it serves and aims to provide the necessary capacity, flexibility, and efficiency to support its customers in the decades to come.
The expansion of the newbuilding program with vessel deliveries starting in 2030 reflects the company's confidence in the fundamental market principles in the long term. This new agreement comes after a private financing round that concluded earlier this month, and the company continues to invest in its long-term fleet needs.
Wallenius Wilhelmsen has already begun delivering vessels under its Shaper class program, and the new vessels are designed to innovate the company's fleet while adding more capacity to its global transport network. The company has stated that the flexible cargo configurations of the vessels will allow it to respond to the changing demands of customers in the automotive and heavy equipment markets.
This investment also reinforces the company's shift towards vessels capable of using alternative fuels. The LNG dual-fuel engine offers a pathway to reduce some emissions compared to traditional marine fuels, although its overall climate benefits depend somewhat on methane emissions and the fuel source.
Wallenius Wilhelmsen, headquartered in Oslo, operates around 130 vessels on 15 trade routes across six continents. Its extensive logistics network includes vehicle processing centers, domestic distribution operations, and marine terminals. The company has stated that the newbuilding expansion program will help maintain operational capacity and flexibility to be prepared for transportation demand in the coming decade.
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