COSCO unveils $1.75bn shipbuilding spree for 29 new vessels
COSCO Launches $1.75 Billion Fleet Expansion
COSCO Shipping has announced an ambitious $1.75 billion newbuilding program aimed at enhancing its fleet with 29 new vessels. This significant investment includes 23 kamsarmax bulk carriers and six very large crude carriers (VLCCs), all set to be constructed at domestic shipyards and scheduled for delivery between 2027 and 2028. The initiative underscores COSCO’s commitment to modernizing its operations and reducing its carbon footprint.
Details of the Newbuilding Program
The newbuilding program will see COSCO Shipping Heavy Industry (Dalian) constructing the 23 kamsarmax bulk carriers, which will have a deadweight tonnage (dwt) of 87,000. The contracts for these bulkers are valued at approximately RMB7.34 billion (around $1.03 billion). Meanwhile, the six VLCCs, each with a dwt of 307,000, will be built by Dalian Shipbuilding Industry Corp (DSIC) at a cost of RMB5.09 billion (approximately $715 million).
Once completed, the bulk carriers will be placed on 20-year bareboat charters with COSCO Shipping Bulk. The VLCCs, designed to be compatible with both methanol and LNG, will enter long-term leases with COSCO Shipping Energy Transportation. Deliveries for these vessels are expected to commence in April 2027 and continue through late 2028.
This latest investment aligns with COSCO’s strategy to modernize its fleet and adopt dual-fuel designs, which are essential for reducing emissions. The company has previously placed orders for additional vessels, including 10 newcastlemax bulkers and four asphalt carriers, with construction taking place at various Chinese shipyards. These projects also feature long-term charters through different COSCO subsidiaries, reinforcing the company’s commitment to sustainable shipping practices.
Broader Expansion Strategy
The newbuilding program is part of COSCO’s broader expansion strategy, which was first announced last year. The company has already secured multiple orders for various types of vessels, including newcastlemaxes and kamsarmaxes, as well as plans for up to 30 multipurpose ships. This proactive approach to fleet expansion and modernization reflects COSCO’s dedication to maintaining a competitive edge in the global shipping industry.
As the shipping sector increasingly focuses on sustainability, COSCO’s investments in dual-fuel technology and long-term operational structures position the company as a leader in the transition towards greener maritime practices. With these new vessels on the horizon, COSCO is set to enhance its operational capabilities while contributing to the industry’s efforts to reduce its environmental impact.
