- COSCO Shipping Bulk’s Newbuilding Drive Signals Fleet Modernisation Push.
- Chinese Shipyards Win Major Orders as COSCO Expands Multipurpose Fleet.
- COSCO Targets Market Growth with Modern Multipurpose Vessel Program
COSCO Shipping Bulk, an important branch of China’s COSCO Shipping, has just announced an exciting new initiative focused on building multipurpose vessels (MPVs). This ambitious program aims to roll out up to 30 vessels, with a hefty investment of around $1.5 billion, reports World Energy.
Initial Order Secured with Citic Financial Leasing
In the first phase, they’ve locked in 15 firm orders for MPVs, each with a deadweight tonnage of 80,000. These ships will be built at Fujian Mawei Shipbuilding, with financing coming from Citic Financial Leasing (Citic FL). Plus, there’s an option to double the order, which could add another 15 vessels to their fleet. Each ship is expected to cost about $50 million, with deliveries planned for between 2027 and 2028.
Strategic Partnership to Support Fleet Expansion
A representative from COSCO Shipping Bulk emphasised the strategic importance of the collaboration: “This partnership with Citic FL strengthens our capacity to expand and modernise our fleet, ensuring we meet future market demands efficiently.” This agreement builds on an earlier charter deal between the two entities, though further details of that prior arrangement have not been disclosed.
Proven Financing Model Reused from Previous Projects
Citic FL is set to fully finance the new vessels, using a financing structure that COSCO has successfully implemented before. Back in 2024, the company teamed up with Everbright Financial Leasing to back the construction of ten 82,000 dwt bulk carriers at Jiangsu Hantong Ship Heavy Industry.
Diversification Strategy Underway
The MPV program is part of COSCO Shipping Bulk’s larger plan to diversify its fleet. Currently, the company operates around 500 vessels, from handysize bulkers to very large ore carriers, and they’ve recently announced plans to add various new types of ships. Contracts for these new vessels have already been signed at several shipyards in China.
Expansion Beyond MPVs: New Orders for Newcastlemax Vessels
Alongside the MPV orders, COSCO has also placed orders for up to 12 Newcastlemax bulk carriers at CSSC Qingdao Beihai Shipbuilding. Industry insiders are hinting that more Newcastlemax orders could be on the horizon, indicating that COSCO’s expansion strategy is gaining traction.
Modern Fleet for Future Market Demands
This ambitious newbuilding program showcases COSCO Shipping Bulk’s strategic aim to bolster its competitive edge in both the dry bulk and multipurpose shipping sectors. By investing in modern, adaptable vessels, the company is positioning itself to effectively meet the changing demands of global shipping.
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Source: World Energy
