Bermuda-based SFL Corporation Ltd, one of the world’s largest ship-owning companies, has entered into long term charters with a leading Asia-based transportation company for two ultra-modern dual-fuel car carriers, designed to use liquefied natural gas.

The company said the vessels are sister vessels of the two 7,000 CEU (car equivalent unit) Pure Car and Truck Carriers under construction, chartered to the Volkswagen Group, and scheduled delivery from the shipyard is in Q1-Q2 of 2024.

The company said the aggregate construction cost will be approximately $155 million, and the charter period will be ten years from delivery of the vessels, adding more than $200 million to SFL’s contracted charter backlog.

Ole B Hjertaker, chief executive officer of SFL Management AS, said: “This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty.

“Over the last few months, we have added multiple new vessels to our portfolio, increasing our charter backlog by more than $700 million. Many of these acquisitions will deliver during the third quarter, adding immediate cashflow and building our long-term distribution capacity.”