China Merchants Secures 25-Year Simandou Freight Deal | Mariner News

China Merchants has secured a significant 25-year freight deal for six bulk carriers, solidifying its role in Guinea’s massive Simandou iron ore project. This long-term contract ensures dedicated tonnage for what is described as the world’s largest iron ore deposits and Africa’s largest infrastructure project.

The agreement specifically covers newbuildings, indicating a substantial capital investment by China Merchants directly linked to the Simandou project’s export requirements. This commitment de-risks the deployment of these six vessels for a quarter-century, providing a stable revenue stream and securing a foundational position in the project’s outbound logistics.

By securing such an extensive contract for new tonnage, China Merchants strengthens its strategic ties to the Simandou development. This long-term, high-volume freight arrangement locks in significant bulk carrier capacity to a single trade lane, potentially impacting the availability of comparable vessels in the future spot or shorter-term charter markets as the Simandou project scales up its operations.