COSCO SHIPPING Development has announced plans to build 24 new vessels through its indirectly wholly owned subsidiaries under contracts worth a combined RMB 8.656 billion (excluding tax), according to filings released on June 30.
15 Multipurpose Grain Carriers
COSCO SHIPPING Development intends to commission COSCO SHIPPING Heavy Industry (Dalian) to construct fifteen 87,000 dwt multipurpose grain carriers through its indirectly wholly-owned subsidiary Hainan COSCO SHIPPING Development Shipping. The unit price per vessel is RMB 319 million, with the total transaction value amounting to RMB 4.785 billion (tax exclusive). Funding will be sourced from internal capital (approximately 25%) and bank loans (approximately 75%).
As COSCO SHIPPING Heavy Industry (Dalian) is a controlled affiliate of the company's indirect controlling shareholder, China COSCO SHIPPING Corporation, this transaction constitutes a connected transaction. The proposal has been reviewed and approved by the first meeting of the company's eighth Board of Directors, with all connected directors having recused themselves from voting. It remains subject to approval by the company's shareholders' meeting. The first vessel is expected to be delivered by June 15, 2029, or earlier, with the remaining vessels to be delivered progressively before the end of 2030.
9 Dry Bulk Carriers
Concurrently, COSCO SHIPPING Development, through its wholly-owned subsidiaries Hainan COSCO SHIPPING Development Shipping and Dongfang Fuli Shipping 11, has commissioned three shipyards under China State Shipbuilding Corporation to construct nine dry bulk carriers, with a total transaction value of RMB 3.871 billion (tax exclusive). This transaction does not constitute a connected transaction or a major asset restructuring, has been approved by the Board of Directors, and does not require submission to the shareholders' meeting.
Specifically, the orders comprise:
Five 87,000 dwt multipurpose grain carriers to be built by CSSC Chengxi Shipyard for a total consideration of RMB 1.595 billion, with a unit price of RMB 319 million per vessel. The first vessel is expected by September 30, 2029, or earlier, with the remainder delivered progressively before the end of June 2030.
Two 210,000 dwt bulk carriers to be built by Dalian Shipbuilding Industry for a total consideration of RMB 1.056 billion. These vessels feature a "methanol + ammonia" fuel-ready design, with deliveries scheduled from October 2029 through August 2030.
Two 210,000 dwt dry cargo vessels to be built by CSSC Qingdao Beihai Shipbuilding for a total consideration of RMB 1.22 billion, also featuring a "methanol + ammonia" fuel-ready design, with deliveries scheduled from November 2029 through June 2030.
The announcement disclosed that upon delivery, all 24 new vessels will be placed on long-term charter to Huifeng Company, a subsidiary of COSCO SHIPPING Bulk. The charter period for each vessel runs for 240 months ± 120 days from the delivery date. After accounting for fuel and propulsion system retrofits and upgrades, the expected annual charter hire for the 87,000 dwt multipurpose grain carriers will not exceed approximately RMB 3.8661 million per vessel (tax exclusive); for the 210,000 dwt bulk carriers, expected annual charter hire will not exceed approximately RMB 5.94024 million per vessel (tax exclusive); and for the 210,000 dwt dry cargo vessels, expected annual charter hire will not exceed approximately RMB 4.55342 million per vessel (tax exclusive). At the end of the charter period, the vessel assets are to be disposed of by the lessor, with the charterer having no purchase obligation.
In its announcements, COSCO SHIPPING Development stated that the company is focused on the core business of the shipping and logistics industry, with container manufacturing, container leasing, and shipping finance leasing at its centre. Through these transactions, the company will further enhance the scale and quality of its vessel asset portfolio, reinforce the development foundation of its ship leasing operations, contribute long-term stable revenue and cash flow, and improve overall financial stability. Concurrently, the company will collaborate with upstream and downstream enterprises along the shipping industry chain to jointly deepen the application of RMB-denominated scenarios across construction, leasing, and operations, further advancing the practical use of the Renminbi in the international shipping sector.
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