Re-evolution of U-Ming Marine Transport Energy-saving and Environmental Protection Fleet. New Panamax Bulk Cargo Ship "Cemtex Diligence" was Named for Delivery

        U-Ming Marine Transport (Singapore) Private Limited, a subsidiary of U-Ming Marine Transport, commissioned Japan Oshima Shipbuilding co,. Ltd to build the Panamax bulk carrier 'Cemtex Diligence' with 82,200 metric tons of load. On June 5, a ceremony was held at Oshima Shipbuilding co,. Ltd. The ceremony was personally hosted by Chairman of Far Eastern Group, Douglas Hsu. Dr. Lin Jingyun, the current President of Far Eastern Memorial Hospital and the wife of Professor Lin Fangyu, former Director of Department of Health, was invited to name the ship. The ceremony was successfully completed with the witness of the guests.
'Cemtex Diligence' is 228.99 meters long, 32.26 meters wide with 82,200 metric tons of load. It is the sixth Panamax bulk carrier built for U-Ming Marine Transport by Japan Oshima Shipbuilding co,. Ltd. It is constructed with conceptual design of energy-saving and environmental protection and uses the most advanced shipbuilding technology. The hull adopts energy-saving line design, the hull uses ultra-low resistance paint, and the stern is equipped with guide fins and spherical rudders and the latest ME-type main engine and match the best efficient propeller to reduce fuel consumption. The EEDI is 23% lower than IMO standard, and the latest ballast water treatment system is installed in accordance with Ballast Water Management Convention, which meets the latest environmental standards. In addition, a desulfurization tower is installed, and the diesel engine exhaust meets the standard of sulfur content less than 0.5% under the 2020 Convention on Low Sulfur Oil. In addition to environmental protection design, 'Cemtex Diligence' is also a smart ship, equipped with FSM and M2M data transmission (Ship Machinery and Equipment Operation Data Management System) to realize fleet information management. It is believed that with 'Cemtex Diligence' put into operation, it can not only expand the capacity of U-Ming Marine Transport fleet, but also meet the future market demand and increase the company's profits due to its high efficiency and low fuel consumption which will be favored by the market.
With the improvement of shipbuilding technology, U-Ming Marine Transport has made priority to consult domestic shipbuilding companies for the construction of new ships in order to enhance operational efficiency and continue to replace old ones with new ones, and then openly announce the bid to international shipbuilding companies, so as to continuously develop energy-saving and environmental protection ship types and increase the competitiveness of fleet. Since 2012, the company has eliminated 19 old ships and 32 new ships with high efficiency and environmental protection function have been put into operation. At present, two 325,000-ton VLOC constructed by Qingdao Beihai Shipbuilding Heavy Industry Co., Ltd, are expected to be delivered by 2020. With the addition of new vessels, the average age of our self-operated bulk fleet is about 5.3 years, which is lower than the average age of global bulk fleet about 9.8 years. In addition, the proportion of energy-saving ships is more than 70%. Compared with other competitors, our company retains the advantages of differentiation and competitiveness, and continuously improves its operating performance and profits. Especially after the implementation of the Low Sulphur Oil Convention in 2020, the cost of fuel will increase, and the competitive advantage of U-Ming Marine Transport will be more significant.
In terms of business development, U-Ming Marine Transport has stabilized the existing niche market, continued to promote digital transformation and opportunities to expand its business. In 2015, U-Ming Marine Transport and Ericsson jointly built the first set of ship networking services, developed Fleet Safety Management (Fleet Safety Management) that is the leader of the industry, and used Big Data to realize information management, supervision and control of fleet, and achieved the goal of digital management of "integration between corporate and ships". In early 2018, a 25-year long-term iron ore transport contract was signed with Vale, Brazil which can increase the proportion of long-term contracts, create stable cash flow and profits. The initial estimated total revenue of the contract will reach NT$17.5 billion, which is the largest long-term contract signed by the company since its establishment. On the other hand, U-Ming Marine Transport continues to expand the Chinese market. In early 2018, ITG-UMING (Xiamen) shipping Co., Ltd and ITG-UMING Shipping Co., Ltd. are jointly established with Xiamen International Trade Group Co., Ltd. to accelerate the development of China's coastal and import and export bulk shipping business. In addition, U-Ming Marine Transport has put more emphasis on the use of light assets business model in recent years, waiting for the opportunity to charter vessels to increase the tonnage of operating vessels and enhance market competitiveness and profitability. In 2018, the annual growth of chartered vessels increased by 87.8% and gross operating profit increased by 144%. At the same time, in April 2019, subsidiary of U-Ming Marine Transport in Xiamen acquired the qualification to be the first crew assignment agency among foreign-funded enterprises in mainland China to provide crew to global shipping companies. In the future, U-Ming Marine Transport will use this qualification and professional experience to expand ship management-related services and improve light assets management-related businesses.