China Merchants and Sinotrans to set up tanker JV

Two of China’s largest shipping firms are forming a US$1.1 billion crude oil tanker joint venture, Reuters reported. State-backed China Merchants Energy Shipping and Sinotrans & CSC Holdings are forming a very large crude carrier (VLCC) joint venture, with the former providing US$566 million in assets, including nine VLCCs, for a 51% stake, and the latter pumping in U$544 million in cash, China Merchants said in a statement late on Monday. The deal is being done with a view to build up China’s fleet, as the world’s second-largest oil consumer seeks better control over its oil imports.