On June 30, COSCO SHIPPING Development Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Development” or the “Company”) issued two announcements revealing plans to order 24 new vessels through its indirect wholly-owned subsidiary, Hainan COSCO SHIPPING Development Shipping Co., Ltd. (Hainan Haifa Shipping). The total construction cost is RMB 8.656 billion (approximately USD 1.274 billion). The order comprises twenty 87,000-dwt multi-purpose grain carriers, two 210,000-dwt bulk carriers, and two 210,000-dwt dry cargo vessels; these vessels will be leased out on a long-term basis following delivery. Details are as follows:
COSCO SHIPPING Heavy Industry (Dalian) Secures Order for 15 Multi-purpose Grain Carriers
COSCO Shipping Development announced that its wholly-owned subsidiary Hainan COSCO SHIPPING Development Marine Transportation has commissioned COSCO SHIPPING Heavy Industry (Dalian) to build 15 87,000 DWT multi-purpose grain carriers. The price per vessel is RMB 319 million, bringing the total transaction value to RMB 4.785 billion (excluding tax; approximately USD 704 million). The first vessel is scheduled for delivery by June 15, 2029, with the remaining vessels to be delivered successively by the end of 2030.
The announcement discloses that the 15 multi-purpose grain carriers ordered will be chartered out under long-term operating leases to Huifeng Company, a subsidiary of COSCO Shipping Bulk. The lease term for each vessel is 240 months (plus or minus 120 days) commencing from the date of delivery; the vessels are scheduled for staggered delivery between mid-2029 and the end of 2030. Factoring in upgrades to the vessels’ fuel propulsion systems, the expected annual charter hire per vessel following delivery will not exceed RMB 38.6061 million (excluding tax). Upon the expiration of the lease term, the lessor is responsible for the disposal of the vessel assets, and the lessee has no obligation to purchase them.
Three shipyards under CSSC have secured orders for nine new vessels
According to an announcement by COSCO SHIPPING Development, its wholly-owned subsidiary, Hainan COSCO SHIPPING Development Marine Transportation, will commission three shipyards under the China State Shipbuilding Corporation (CSSC) to build a total of nine dry bulk carriers across three different models. The total transaction value is RMB 3.871 billion (excluding tax; approximately USD 570 million). Details are as follows:
Hainan COSCO SHIPPING Development Marine Transportation plans to place an order with CSSC Chengxi Shipbuilding for the construction of five 87,000-dwt multi-purpose grain carriers. The total transaction value is RMB 1.595 billion (excluding tax, approximately US$235 million), with a unit price of RMB 319 million. The first vessel is scheduled for delivery on or before September 30, 2029, with the remaining vessels to be delivered successively by the end of June 2030.
Upon delivery, this batch of new vessels will be chartered out under a long-term operating lease to Huifeng Company, a subsidiary of COSCO SHIPPING Bulk, for operation. The lease term for each vessel is 240 months (plus or minus 120 days) commencing from the date of delivery; the vessels are expected to be delivered successively between September 2029 and June 2030. After accounting for fuel-propulsion system retrofitting and upgrades, the expected annual rental fee for each vessel following delivery will not exceed RMB 38.6061 million (excluding tax). The lessor is responsible for the disposal of the vessel assets at the end of the lease term, and the lessee has no obligation to purchase the vessels.
Hainan COSCO SHIPPING Development Marine Transportation plans to place an order with Dalian Shipbuilding Industry Corporation (DSIC) for the construction of two 210,000-dwt bulk carriers—designed to be “methanol and ammonia-ready”—at a total contract value of RMB 1.056 billion (excluding tax; approximately US$155 million). The price per vessel is RMB 528 million, with staggered deliveries scheduled between October 2029 and August 2030.
Upon delivery, this batch of new vessels will be leased on a long-term operating basis to Huifeng Company, a subsidiary of COSCO SHIPPING Bulk, for operation. The lease term for each vessel is 240 months (plus or minus 120 days) commencing from the date of delivery; the vessels are scheduled for staggered delivery between October 2029 and August 2030. Factoring in the upgrade to dual-fuel propulsion, the expected annual rental fee per vessel following delivery will not exceed approximately RMB 59.4024 million (excluding tax). The lessor is responsible for the disposal of the vessel assets at the end of the lease term, and the lessee has no obligation to purchase the vessels.
Hainan COSCO SHIPPING Development Marine Transportation plans to place an order with Beihai Shipbuilding for the construction of two 210,000-deadweight-tonne dry bulk carriers—designed to be “methanol and ammonia-ready”—at a total contract value of RMB 1.22 billion (excluding tax; approximately USD 180 million). The price per vessel is RMB 610 million, with staggered deliveries scheduled between November 2029 and June 2030.
Upon delivery, this batch of new vessels will be leased under long-term bareboat charters to Huifeng Company—a subsidiary of COSCO SHIPPING Bulk—for operation. The lease term for each vessel is 240 months (plus or minus 120 days) commencing from the date of delivery; deliveries are expected to take place successively between November 2029 and June 2030. Factoring in the upgrade to dual-fuel propulsion, the anticipated annual charter hire for each vessel post-delivery will not exceed RMB 45.5342 million (excluding tax). At the end of the lease term, the lessor is responsible for the disposal of the vessels, and the lessee has no obligation to purchase the vessel assets.
COSCO SHIPPING Development stated that the investment in these vessels will further leverage the synergies between industry and finance, expand the scale and quality of its vessel assets, and solidify the foundation of its vessel leasing business. This initiative is expected to generate stable long-term revenue and cash flow, bolster the company’s overall financial resilience, and drive sustainable development. Furthermore, by capitalizing on the policy advantages of the Hainan Free Trade Port and collaborating with upstream and downstream partners in the shipping industry, the company aims to deepen the application of the RMB across the “manufacturing, leasing, and shipping” value chain, thereby advancing the practical use of the RMB in international shipping and enhancing its market competitiveness.