COSCO Shipping Development has unveiled orders for 24 dry bulk vessels worth RMB8.66bn ($1.27bn), deepening its ship leasing business with long-term charters back into the COSCO group.
The Shanghai- and Hong Kong-listed company said its indirect wholly owned subsidiary Hainan COSCO Shipping Development Shipping will contract the vessels at yards controlled by COSCO Shipping Heavy Industry and China State Shipbuilding Corporation.
The order comprises twenty 87,000 dwt multi-purpose grain carriers and four 210,000 dwt newcastlemaxes, with deliveries scheduled from mid-2029 through the end of 2030.
COSCO Shipping Heavy Industry’s Dalian yard will build 15 of the 87,000 dwt grain carriers at RMB319m each, for a total of RMB4.79bn. CSSC Chengxi Shipbuilding will build a further five vessels of the same design, also priced at RMB319m each.
The larger vessels will be split between two CSSC yards. Dalian Shipbuilding Industry Corporation will construct two 210,000 dwt bulk carriers for RMB528m each, while Beihai Shipbuilding will build two 210,000 dwt dry bulk carriers at RMB610m each. The 210,000 dwt ships will be methanol- and ammonia-ready.
All 24 ships will be leased on long-term contracts to Huifeng, a subsidiary of COSCO Shipping Bulk. Each lease will run for 240 months, plus or minus 120 days, from delivery. The lessee will have no obligation to purchase the vessels at the end of the charter period.
COSCO linked the orders to use of the Hainan Free Trade Port, saying the structure would support wider application of the renminbi across shipbuilding, leasing and shipping.
