On July 29, COSCO SHIPPING Development Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Development” or the “Company”) announced that it plans to commission the construction of ten 210,000 DWT Newcastlemax bulk carriers through its indirect wholly-owned subsidiary, Hainan COSCO SHIPPING Development Shipping Co., Ltd., with Shanghai Waigaoqiao Shipbuilding Co., Ltd. (a subsidiary of China State Shipbuilding Corporation); additionally, it plans to commission the construction of five vessels of the same type with Nantong Xiangyu Shipbuilding & Offshore Engineering Co., Ltd. (Nantong Xiangyu SOE), a subsidiary of Xiamen Xiangyu Co., Ltd..
The total transaction value for the 15 bulk carriers is RMB 7.92 billion (excluding tax, approximately US$1.171 billion), with a unit price of RMB 528 million (approximately US$78 million); all vessels feature a “methanol- and ammonia-ready” design.
Specifically, the contract for the 10 new vessels undertaken by Waigaoqiao Shipbuilding is valued at RMB 5.28 billion (excluding tax, approximately US$781 million), with staggered deliveries expected between June 2030 and December 2030; the contract for the 5 new vessels undertaken by Nantong Xiangyu SOE is valued at RMB 2.64 billion (excluding tax, approximately US$390 million), with staggered deliveries expected between May 2030 and December 2030.
Upon delivery, this batch of new vessels will be chartered out on a long-term operating basis to Huifeng Shipping Co., Ltd., 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. Taking into account the upgrade to dual-fuel propulsion, the expected annual charter hire for each vessel is not to exceed RMB 59.4 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.
According to information released by COSCO SHIPPING Development, the 15 Newcastlemax bulk carriers (210,000 DWT class) being built under this investment feature a design that fully meets the demands of global deep-sea bulk cargo transportation. The vessels incorporate a “methanol-plus-ammonia” dual clean-fuel-ready design, proactively aligning with the global shipping industry’s green transition; this allows for flexible compatibility with the technological evolution of future low-carbon fuels, thereby providing technical support for both environmental sustainability and operational cost-efficiency.
COSCO SHIPPING Development stated that the construction of this batch of vessels will further refine the company’s asset portfolio of large bulk carriers, enrich its reserves of high-quality large-scale shipping assets, and accelerate the creation of a vessel leasing asset matrix spanning diverse vessel types, operational scenarios, and asset lifecycles—thereby injecting strong momentum into the strategic development of the company’s shipping leasing business.
It is worth noting that this marks the second time in just one month that COSCO SHIPPING Development has announced a major shipbuilding plan.
On June 30, COSCO SHIPPING Development announced plans to order 24 new vessels through Hainan COSCO SHIPPING Development Shipping at a total cost of RMB 8.656 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 chartered out on a long-term basis following delivery.
The 24 new vessels are allocated as follows: 15 multi-purpose grain carriers to COSCO SHIPPING Heavy Industry (Dalian); 5 multi-purpose grain carriers to CSSC Chengxi Shipyard; two 210,000 DWT bulk carriers (methanol and ammonia-ready) to Dalian Shipbuilding Industry Corporation (DSIC); and two 210,000 DWT dry cargo vessels (methanol and ammonia-ready) to Beihai Shipbuilding.
COSCO SHIPPING Development revealed that it currently has over 100 vessels of various types under construction, with deliveries scheduled to take place successively over the next five years.