COSCO Shipping Development has announced orders for 24 dry bulk vessels worth $1.27 billion, expanding its ship leasing portfolio through long-term charter arrangements within the COSCO group. The orders were placed by the company’s wholly owned subsidiary Hainan COSCO Shipping Development Shipping, with construction to be carried out at shipyards operated by COSCO Shipping Heavy Industry and China State Shipbuilding Corporation (CSSC).
The newbuilding programme includes 20 multi-purpose grain carriers of 87,000 dwt and four Newcastlemax bulk carriers of 210,000 dwt. Deliveries are scheduled between mid-2029 and the end of 2030.
Under the contracts COSCO Shipping Heavy Industry Dalian will build 15 grain carriers at $44 million each. CSSC Chengxi Shipbuilding will construct the remaining five 87,000-dwt vessels, also priced at $44 million each.
Dalian Shipbuilding Industry Corporation (DSIC) will build two 210,000-dwt Newcastlemax bulk carriers and Beihai Shipbuilding will construct the remaining two 210,000-dwt vessels.
The four Newcastlemax vessels will be built methanol- and ammonia-ready, allowing for future conversion to alternative marine fuels.
All 24 ships will be leased to Huifeng, a subsidiary of COSCO Shipping Bulk, under 240-month (20-year) lease agreements. The charter arrangements do not include an obligation for the charterer to purchase the vessels at the end of the lease period.
According to COSCO Shipping Development, the transaction also supports the development of the Hainan Free Trade Port, promoting broader use of the Chinese renminbi in shipbuilding, ship leasing and maritime transportation.
