COSCO Shipping has unveiled a significant shipbuilding initiative involving 14 vessels to be constructed at domestic shipyards. The move signals a strategic push by the financing arm of China’s state-controlled shipping giant, COSCO Shipping Development.
The newbuilding program comprises 10 newcastlemax bulk carriers and four asphalt carriers. Notably, CSSC Qingdao Beihai Shipbuilding will construct four 210,000 dwt vessels, while an additional six will be built at COSCO Shipping Heavy Industry’s Zhoushan yard.
Upon completion between 2027 and 2028, these ships will be chartered long-term by COSCO Shipping Bulk for approximately 20 years. Furthermore, COSCO Shipping Development has placed an order for four 9,000 dwt asphalt carriers from CSSC Huangpu Wenchong, each priced at around $28 million, exclusive of tax.
This latest initiative builds on COSCO Shipping Bulk’s broader expansion strategy, which was unveiled the previous year. The company has already secured contracts for various vessel types across multiple Chinese shipyards.
Meanwhile, COSCO Shipping Specialized Carriers is intensifying its fleet ahead of anticipated demand for transporting infrastructure equipment, wind turbines, railway machinery, and heavy goods. With a current fleet of over 140 ships, including multipurpose, heavylift, asphalt carriers, and pulp vessels, the company aims to expand to over 10 million dwt by 2026.
Aside from dry cargo and specialized tanker construction, COSCO Shipping Development has also announced plans for a sale and leaseback deal involving a 271,000 cu m QC-Max LNG carrier valued at up to $360 million, with a lease term of 20 years.
This move underscores COSCO’s commitment to modernizing its fleet and catering to evolving market demands. The company’s strategic investments in newbuild projects reflect its proactive approach to staying competitive in the dynamic maritime industry.
Experts view COSCO’s aggressive shipbuilding push as a strategic move to enhance its market presence and operational efficiency. By investing in modern, fuel-efficient vessels, COSCO aims to bolster its fleet capabilities and offer more competitive shipping solutions to its clients.
The maritime sector’s focus on domestic shipbuilding underscores China’s growing influence in the global shipping industry. With a robust shipbuilding infrastructure and technological advancements, Chinese shipyards are increasingly becoming key players in meeting the evolving needs of the maritime market.
As the shipping industry continues to evolve, initiatives like COSCO’s newbuilding program highlight the sector’s resilience and adaptability. By embracing innovation and strategic investments, companies can position themselves for sustainable growth and success in a competitive marketplace.
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