COSCO Shipping Development has signed contracts to acquire 24 dry cargo vessels from domestic shipbuilders.
The transaction includes 15 multipurpose grain vessels of 87,000 DWT to be constructed by Dalian COSCO Shipping Heavy Industry for CNY4.79 billion ($704.3 million) excluding tax.
The company announced that the remaining nine vessels will be built by China State Shipbuilding Corporation for a total of CNY3.87 billion. This portion of the order comprises five multipurpose grain vessels of 87,000 DWT, two bulk carriers of 211,000 DWT, and two dry cargo vessels of 210,000 DWT.
COSCO Shipping Development reported that the 15 vessels from Dalian COSCO Shipping Heavy Industry are scheduled to be delivered between June 2029 and December 2030.
The company added that the remaining nine vessels are expected to be completed between September 2029 and August 2030.
Upon delivery of the vessels, the group plans to provide leasing services to Wai Fung Shipping for a period of 20 years. The company projected that no transaction revenues will be generated from these leases before 2029 while the vessels are under construction.
According to the company, the maximum annual lease rent per vessel is expected to reach CNY38.60 million for the grain carriers.
COSCO Shipping Development also estimated maximum annual rents of CNY59.40 million for the bulk carriers and CNY45.53 million for the dry cargo vessels.
COSCO Shipping Development will fund 25 per cent of the investment using internal resources. The remaining capital will be secured through bank borrowings and external debt financing.
