On August 30, COSCO Shipping Development Co., Ltd (hereinafter referred to as “COSCO Shipping Development” or “the Company”) released “Announcement of Related Transactions on the Construction of 20 New Bulk Carriers” and “Announcement on the construction of 22 80,000 DWT bulk carriers.
The announcement disclosed that COSCO Shipping Development will commit COSCO Shipping Heavy Industry to build 20 bulk carriers, CSSC Chengxi Shipyard to build 22 bulk carriers. Upon delivery, all 42 new vessels will be time chartered under operating leases to companies owned by COSCO Shipping Bulk.
Specifically, COSCO SHIPPING, through its wholly-owned subsidiary Hainan COSCO Shipping Development, has commissioned COSCO Shipping Heavy Industry (Yangzhou) to build two 82,500 dwt bulk carriers, with a transaction value of approximately RMB542 million (excluding tax, approximately US$76.42 million), to be delivered by September 30, 2027 and December 31, 2027, respectively. delivered by September 30, 2027 and December 31, 2027, respectively.
Commissioned COSCO Shipping Heavy Industry (Dalian) to build 13 80,000 dwt bulk carriers, with a transaction amount of approximately RMB4.061 billion (excluding tax, approximately US$573 million), the first vessel is scheduled to be delivered in the fourth quarter of 2026, and the later vessels will be delivered in 2026-2027 according to the contract.
Commissioned COSCO Shipping Heavy Industry (Zhoushan) to build five 64,000 dwt bulk carriers, with a transaction amount of approximately RMB1.229 billion ( excluding tax, approximately US$173 million), with the first bulk carrier scheduled to be delivered in July 2027, and the subsequent deliveries to be completed in 2027 according to the contractual agreement.
The total amount of the transaction is approximately RMB 5.832 billion ( about US$822 million). It is worth noting that all the 20 new vessels commissioned are methanol reserved environmental friendly bulk carriers.
In addition to placing shipbuilding orders with companies belonging to COSCO Shipping Heavy Industries, Hainan COSCO Shipping Development has also commissioned CSSC Chengxi Shipyard to build 22 new 80,000 DWT bulk carriers, with a total transaction amounting to approximately RMB 6.873 billion (US$969 million excluding tax), which are expected to be delivered one after another from January 2027 onwards.
According to COSCO Shipping Development, the company focuses on the main line of shipping and logistics industry, concentrates on the integrated development with container manufacturing, container leasing and shipping leasing as the core business and investment management as the support, to build a world-class shipping production and financing operator with the characteristics of COSCO Shipping.
COSCO Shipping Development will actively grasp the development trend of green and low-carbon shipping industry, further implement the strategic development of the company’s shipping production and financing operator, and enhance its value discovery and value creation capabilities. The transaction effectively strengthens the cornerstone of the development of the its ship leasing business, contributes long-term stable income and cash flow, and improves its overall financial soundness.
