UPM finalized a long-term charter contract with affiliates of the Spliethoff Group, Bore Ltd and Wijnne Barends. The arrangement will allow for the design and construction of seven vessels for UPM’s use at sea in Europe.
Regarding construction, Wijnne Barends will be responsible for delivering 4 LoLo vessels while Bore Ltd will build 3 RoLo vessels. Particularly, the RoLo vessels will transport paper products for UPM and the LoLo vessels will carry pulp and other forest outputs. All seven ships will be built in China and are scheduled for delivery in 2021 and 2022.
According to UPMS’s Director, Global Break Bulk Shipping, Logistics, “This arrangement is a consistent step in UPM’s logistics strategy. It will safeguard a sustainable, competitive and reliable shipping solution for our businesses and customers on long term.”
Each vessel will be ice-strengthened and will be fueled by liquefied natural gas (LNG). Notably, LNG will emit less carbon dioxide than traditional marine fuels. Additionally, particle output will be reduced along with sulfur oxides and nitrogen oxides.
Spliethoff’s CCO, Michael van den Heuvel stated, “We are very pleased to be able to offer UPM these next generation sustainable vessels. Minimising our environmental footprint has long been a focal point for the Spliethoff Group and the reduction of emissions is a fundamental part of this. The new vessels running on LNG fit well in our continuous drive for greener operations.”
