COSCO Launches $1.75 Billion Fleet Expansion Plan
COSCO Shipping has announced a substantial $1.75 billion newbuilding initiative, aimed at enhancing and modernizing its fleet with the addition of 29 new vessels. This ambitious program includes 23 kamsarmax bulk carriers and six very large crude carriers (VLCCs), all set to be constructed in domestic shipyards, with deliveries scheduled between 2027 and 2028. The strategic investment marks a significant step in COSCO’s ongoing efforts to refresh its operations across critical maritime sectors.
Details of the Newbuilding Program
The newbuilding program will see construction take place at two prominent Chinese shipyards. COSCO Shipping Heavy Industry (Dalian) is contracted to build the 87,000 deadweight ton (dwt) bulk carriers, under agreements valued at approximately RMB7.34 billion ($1.03 billion). Meanwhile, Dalian Shipbuilding Industry Corp (DSIC) will construct the six VLCCs, which have a total worth of RMB5.09 billion ($715 million).
Upon completion, the kamsarmax bulk carriers will be leased on 20-year bareboat charters to COSCO Shipping Bulk. The VLCCs, designed to be compatible with methanol and LNG fuel, will enter into long-term leases with COSCO Shipping Energy Transportation. Deliveries of these vessels are slated to commence in April 2027 and continue into late 2028.
COSCO Continues Methanol Commitment with New $2B Order for Containerships
This latest investment aligns with COSCO’s broader strategy to modernize and decarbonize its fleet, focusing on dual-fuel designs and sustainable operating frameworks. The announcement follows a series of earlier orders this year, which included 10 newcastlemax bulkers and four asphalt carriers, also set to be built at various shipyards, with long-term charter agreements facilitated through different COSCO subsidiaries.
Strategic Expansion and Future Plans
COSCO’s recent orders are part of a larger expansion strategy unveiled last year, which has led to the commitment of multiple vessel types across various Chinese shipyards. This includes additional newcastlemax and kamsarmax vessels, as well as plans for up to 30 ships in the multipurpose segment. The ongoing investments highlight COSCO’s focus on enhancing its operational capabilities and positioning within the competitive shipping industry.
As COSCO continues to invest in fleet renewal and efficiency, the company’s vision reflects a growing trend in the maritime sector towards sustainability and modernization. With these new vessels, COSCO aims to not only meet current market demands but also to lead the way in environmentally responsible shipping practices.
