The first VLOC, due to set sail shortly for FMG’s Herb Elliott port, is named FMG Nicola.

The vessel is named after FMG founder and chairman Andrew Forrest’s wife Nicola.

A further three under construction will be named FMG Grace, FMG Sophia and FMG Sydney, after Forrest’s three children.

Australian Ambassador to China Jan Adams joined CEO Nev Power at a ceremony at the Yangzijiang Shipyard in Jiangsu Province yesterday.

“The VLOC fleet is a natural extension of our supply chain and will play a significant role in increasing efficiencies at our port and lowering costs,” Power said.

“They also reflect and strengthen Fortescue’s close relationships in China, our largest market.”

Two weeks ago, FMG signed a ground-breaking $US473 million financing facility with China Development Bank Financial Leasing Co (CDB Leasing), the largest direct Chinese financing deal for an Australian company.

A further four VLOCs are being built at Guangzhou Shipyard International, with delivery of the final vessel expected in mid-2018.

“Our partnerships with both Yangzijiang Shipyard and Guangzhou Shipyard International, and the financing transaction with CDB Leasing are great examples of Fortescue’s strong collaboration with China,” Power said.

“We value these relationships very highly and look forward to continued success as we work together on initiatives for our mutual benefit.”

The new fleet is set to improve load rates, efficiencies and reduce costs.

When fully operational, the fleet will provide 12%, or 21 million tonnes per annum, of FMG’s shipping requirements.

Shares in FMG closed A5c lower at $6.20 yesterday.