COSCO Shipping Development Plans to Build 15 Large Bulk Carriers for $1.1 Billion
COSCO Shipping Development has announced plans to commission the construction of 15 bulk carriers, each with a capacity of 210,000 tons. The total value of this shipbuilding order is approximately 7.92 billion yuan (excluding tax), which converts to roughly $1.1 billion USD. The company will place the orders through its indirectly wholly-owned subsidiary, Hainan Haifa Shipping. Specifically, 10 vessels will be built by Waigaoqiao Shipyard, and the remaining 5 will be constructed by Xiamen Shipbuilding Industry. This significant investment has received approval from the company's board of directors. However, the portion of the deal involving Waigaoqiao Shipyard requires further approval from a shareholder meeting. The new fleet is scheduled for delivery between May and December 2030. Upon completion, these bulk carriers will be leased on long-term time charters to subsidiaries of COSCO Shipping Bulk. Each vessel is expected to generate an annual charter fee not exceeding 59.4 million yuan (excluding tax).
This substantial order for 15 large bulk carriers by COSCO Shipping Development signals a strategic expansion of its fleet capacity, likely anticipating future global trade demands and potentially seeking to modernize its existing assets. The significant capital expenditure, financed through internal resources and potentially debt, reflects confidence in the long-term viability of the dry bulk shipping market. The long-term chartering strategy with affiliated COSCO Shipping Bulk suggests an integrated approach to managing shipping assets and securing stable revenue streams. This move could also be influenced by evolving environmental regulations, as newer vessels often offer improved fuel efficiency, positioning the company for future sustainability requirements. The scale of the order may also impact global shipbuilding capacity and pricing dynamics in the coming years.
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