COSCO Shipping Development has once again launched a large-scale newbuilding investment, committing nearly RMB 8.7 billion to order 24 dry bulk vessels of three different types from four domestic shipyards.
On June 30, COSCO Shipping Development Co., Ltd. announced that its subsidiary plans to acquire 20 eight‑70,000‑ton class multipurpose grain carriers, two 210,000‑ton class bulk carriers, and two 210,000‑ton class dry cargo vessels, which will be placed on long-term time charter upon delivery. The successful implementation of this shipbuilding and leasing project not only injects new, high‑quality assets into the company’s shipping‑leasing business but also marks the opening act of a new phase of high‑quality development during the 15th Five-Year Plan period.
Two shipyards have secured orders for 20 87,000-ton multipurpose grain carriers.
According to the announcement, Hainan COSCO SHIPPING Development Shipping Co., Ltd., an indirectly wholly owned subsidiary of COSCO SHIPPING Development, has commissioned Dalian COSCO SHIPPING Heavy Industry Co., Ltd. to build 15 multi-purpose grain carriers, each with a capacity of 87,000 deadweight tons. The total transaction value amounts to RMB 4.785 billion, with a unit price of RMB 319 million per vessel. The first vessel is expected to be delivered on or before June 15, 2029, with the remaining vessels scheduled for phased delivery by the end of 2030.
Meanwhile, Hainan COSCO Shipping Logistics has also commissioned China Shipbuilding Group’s CSSC Chengxi Shipyard to build five identical vessels, with a total contract value of RMB 1.595 billion and a unit price of RMB 319 million per vessel. The first vessel is expected to be delivered on or before September 30, 2029, while the remaining ships will all be delivered by the end of June 2030.
Upon delivery, the aforementioned 20 multipurpose grain carriers will all be chartered on a long-term operating time‑charter basis to Huifeng Company, a subsidiary of COSCO SHIPPING Bulk. The charter period for each vessel is 240 months, plus or minus 120 days, commencing from the date of delivery. Taking into account the retrofitting and upgrading of the vessels’ fuel‑efficient propulsion systems, the expected annual charter rate for each vessel will not exceed RMB 38.6061 million (excluding tax). Upon expiration of the charter term, the lessee shall have no obligation to purchase the vessels; the lessor shall be responsible for disposing of the vessel assets.
Dalian Shipbuilding has secured orders for two 210,000-ton bulk carriers.
In addition, Hainan COSCO Shipping Logistics has commissioned Dalian Shipbuilding Industry Group Co., Ltd., a subsidiary of China Shipbuilding Group, to build two 210,000‑dwt bulk carriers, with a total contract value of RMB 1.056 billion and a unit price of RMB 528 million per vessel. The newbuilds feature a design that accommodates “methanol + ammonia” fuel options and are scheduled for phased delivery between October 2029 and August 2030.
Upon delivery, the two 210,000‑dwt bulk carriers will likewise be placed on long‑term operating leases to Huifeng Company, a subsidiary of COSCO Bulk Shipping. The lease term for each vessel is 240 months, plus or minus 120 days, commencing from the date of delivery. Taking into account the vessels’ dual‑fuel propulsion retrofit and upgrade, the expected annual rental per vessel will not exceed RMB 59.4024 million (excluding tax). Upon expiration of the lease, the ownership and disposition of the vessels will remain with the lessor.
Beihai Shipbuilding has secured orders for two 210,000-ton deadweight dry bulk carriers.
Meanwhile, Oriental Fleet SHIPPING 11 Limited, an indirectly wholly owned subsidiary of COSCO Shipping Development, has commissioned Qingdao Beihai Shipbuilding Co., Ltd. of China Shipbuilding Group to build two 210,000‑dwt dry bulk carriers, with a total contract value of RMB 1.22 billion and a unit price of RMB 610 million per vessel. The newbuilds also feature a “methanol‑plus‑ammonia fuel‑ready” design and are scheduled for phased delivery between November 2029 and June 2030.
Upon delivery, the two aforementioned dry bulk vessels will be chartered on a long-term bareboat basis to Huifeng Company, a subsidiary of COSCO SHIPPING Bulk. The charter period for each vessel is 240 months, plus or minus 120 days, commencing from the date of delivery. Following the retrofitting and upgrade to dual-fuel propulsion, the anticipated annual charter rate for each vessel is expected not to exceed RMB 45.5342 million (excluding tax). Upon expiration of the charter term, the lessor shall be responsible for disposing of the vessel assets, and the lessee shall have no obligation to purchase such assets.
COSCO Shipping Development stated that, centered on the shipping and logistics industry, the company focuses on container manufacturing, container leasing, and shipping leasing as its core businesses, supported by investment management, to achieve integrated development across industry, finance, and investment. The company is committed to building a world-class shipping‑industry‑finance operator with distinctive COSCO Shipping characteristics.
Through this transaction, COSCO Shipping Development will further leverage its synergies between industry and finance, expand the scale and enhance the quality of its vessel‑related assets, solidify the foundation for its ship‑leasing business, generate long‑term, stable revenue and cash flow, bolster the company’s overall financial resilience, and strengthen its momentum for sustainable growth. At the same time, by capitalizing on the policy dividends of the Hainan Free Trade Port, the company will collaborate with upstream and downstream enterprises across the shipping value chain to deepen the application of RMB in the “build‑lease‑operate” ecosystem, further advancing the practical use of the renminbi in the international shipping sector and enhancing its competitive edge.
In recent years, COSCO Shipping Development has steadily deepened its engagement in the ship‑leasing and finance‑industry integration sector, successfully completing construction‑and‑charter projects for more than 90 vessels of various types. These vessels are scheduled to enter service between 2026 and 2030. With the delivery of an additional 24 vessels, the company will further bolster its long-term, stable revenue and cash flow, helping to generate sustained, robust value returns and building resilience to effectively navigate market cycles.
