Is $84 Million Too Much for a Fish Farming Vessel?
Guoxin 1 - 2-1
On April 17th, a Chinese company launched its second fish farm vessel: a 150,000 DWT tanker outfitted with culture tanks to produce 3,600 metric tons of yellow croaker per year. The reported cost? 610 million yuan—about $84.1 million USD.
Predictably, the internet had thoughts. Everything from, “This is a colossal waste of money,” to “It’ll never work,” to xenophobic rants disguised as economic or environmental concern.
Let’s calm down and actually look at the numbers.
Capex Per Kilogram: Actually… Fine?
Figures gathered from company investor presentations.
Using the $84M cost and 3,600 mt production figure, we’re looking at a capex of about $23.30 per kg of annual production. That might sound high—until you compare it to early-stage land-based salmon farms. Those projects often come in at comparable or higher capex per kg.
And unlike land-based systems, ships are built in shipyards under fixed-price EPC contracts. That means fewer budget overruns, no excavations that turn into money pits, and no delays due to somebody forgetting concrete hardens in the rain.
Capital Efficiency: A Little Chunky, But Understandable
Asset intensity (how much capital is tied up per kg of fish) does seem high compared to mature salmon companies. But context matters:
No Site Licenses: Traditional farms need government-issued licenses that can make up 15–40% of asset value. A vessel doesn’t.
Vertical Integration Distortion: Companies like Mowi and Bakkafrost have feed plants, hatcheries, and entire logistical empires that skew their asset numbers.
New Tech Bloat: Early-stage systems are always bloated. That’s the nature of innovation—especially when it floats.
Operating Costs: Not Cheap, But Not Crazy
I don’t have Guoxin’s exact OpEx, but we can estimate:
Charter Equivalent: A Capesize vessel (~180,000 DWT) charter rate was $17,500/day on April 22nd, 2025. Annualized, that’s $6.39M, or $1.77/kg. These costs are published on line. Charter rates cover vessel ownership and maintenance, crew, insurance etc.
Fuel Estimate: If moored and running equipment on HFO, fuel might add another $250–300K/year—around 7.6 cents/kg.
So, a reasonable estimate for indirect operating costs is about $1.85/kg.
Average salmon production cost in Norway 2023
Compare that to Norwegian salmon farms, where indirect operational costs (not including feed or smolts) hover around $1.30–$1.50/kg. So yes, Guoxin’s OpEx is high—but not ludicrous. For a second-of-its-kind system with no scale yet, that’s actually impressive. Especially when you consider that Atlantic Sapphire - after 10 years of trying, had an all-in economic cost of production of more than $52/kg.
So… Is It Too Expensive?
No. If you’re willing to accept these numbers in salmon farming—and the industry clearly is—then $84 million for a mobile fish-producing vessel is not outrageous.
Will it succeed? No idea. But from a capital and operating cost perspective, this isn’t a moonshot—it’s a calculated bet. One that, if scaled, could make a lot of people reconsider their assumptions about where fish can be farmed.
Final Thought
Just because something is new and expensive doesn’t make it a bad idea. Sometimes it just means you haven’t caught up yet.
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