On the 18th, it was announced at the World Maritime Equipment Conference 2024 that the pilot project for a 1,000-ton-class pure electric cargo ship in Fujian Province has officially begun construction. Fuzhou-based shipping company Minjiang Shunda Logistics Co., Ltd. and the State Power Investment Corporation (SPIC) signed an order for 50 electric cargo ships, with a total investment of 900 million RMB. The project will create a fleet of 1,000-ton-class pure electric inland river cargo ships. The first 20 ships are scheduled for delivery by May next year and will be deployed on river-sea intermodal routes, making them the largest pure electric cargo ships in the Minjiang River Basin.
Minjiang Shunda Logistics Co., Ltd., one of the largest inland river shipping companies in the Minjiang River, handles shipping services for the middle and lower reaches of the river. The company currently operates more than 20 cargo ships with a total capacity of over 20,000 tons.
It is well known that electric ships are significantly more expensive than their diesel-powered counterparts. Currently, a 1,000-ton diesel bulk carrier costs between 3 million and 5 million yuan, whereas switching to a pure electric model raises the price substantially. Each of the pure electric vessels ordered by Minjiang Shunda comes with a contract price as high as 16 million yuan. What is compelling the company to proactively embrace this transformation?
Mr. Lin, the head of Minjiang Shunda, explained that most of the vessels currently in operation are already over 15 years old, and their maintenance costs and fuel consumption remain high, making replacement and upgrades urgent. On the other hand, the substantial subsidies for large-scale equipment and the application of new energy vessels from the national and provincial governments have greatly stimulated enterprises’ enthusiasm for transitioning to new energy alternatives.
What benefits will the enterprise gain from the switch to electric? Taking Minjiang Shunda’s diesel-powered cargo ships as an example, a vessel with a main engine power of 824 kilowatts, when fully loaded, consumes 3,000 yuan worth of fuel for a single trip from Minqing to Mawei. If the diesel engine is replaced with an electric motor, the estimated electricity cost for the same trip would be 1,360 yuan, saving 1,640 yuan per trip. “Fuel costs account for about half of the total operating cost of a cargo ship. After switching from diesel to pure electric, fuel and labor costs will decrease, and the total operating costs are expected to drop by one-third,” Mr. Lin said. Meanwhile, each electric ship can replace up to 126 tons of fuel annually, reducing carbon dioxide emissions by approximately 390 tons, with a carbon trading quota value of about 40,000 yuan.
According to Mr. Lin, the root of the electric cargo ship pilot project lies in the demand from the shipping market. Although the initial investment is high, in the long term, it will help reduce operating costs for shipping routes and improve the company’s market competitiveness. “Currently, the government provides three subsidies for new energy vessels, and just this subsidy alone can save shipowners over 5 million yuan per vessel.”
It is reported that the shipbuilding orders will be carried out in three phases. The first phase plans to invest 336 million yuan to build 20 electric cargo vessels, each 10.8 meters wide, which can be used for both bulk cargo and distribution. These will also establish technology standards that can be promoted and replicated. In the second phase, based on the upgrading of the Minjiang waterway, an additional 20 electric cargo ships, each 10.8 meters wide, will be built (if the Minjiang waterway upgrade is not implemented, this phase will be skipped). In the third phase, the plan is to build 10 electric cargo vessels with a width of 12 meters, suitable for both bulk cargo and distribution.
Minjiang Shunda specializes in transporting bulk commodities such as coal, cement, and sand from regions like Nanping, Yongtai, and Minqing. Since the regular operation of Nanping Port began in 2023, the Nanping–Mawei Port intermodal waterway route has seen a surge in popularity, with industrial goods along the route increasingly shifting to water transport. The robust demand for cargo transportation has also revitalized the once-dormant Minjiang shipping industry. Minjiang Shunda’s newly launched fleet of new energy-electric vessels will provide a powerful boost to reducing logistics costs for local enterprises and driving high-quality development in the shipping industry.
According to the Fuzhou waterway authorities, electric vessels are mainly used for passenger boats and service vessels, and the development of electric cargo vessels for inland rivers is still in its early stages, but the market potential is vast. Most of the existing cargo vessels in the Minjiang River Basin operate on point-to-point, high-frequency routes, making them highly compatible with the main application scenario of electric cargo vessels, demonstrating strong feasibility. The “box-type power” pure electric vessels used by Minjiang Shunda, which incorporate the latest technology in the new energy field for vessels, are widely recognized as the most suitable technological route for inland river cargo vessels. If successfully implemented, this will mark a significant breakthrough in the large-scale adoption of electric cargo vessels on inland waterways, providing a vital demonstration and reference point for the standardization and sustainable development of such vessels in China. (Reporter: Zhu Rong)
