COSCO SHIPPING Development Co., Ltd. announced that on July 29, 2025, its wholly owned subsidiary Hainan COSCO SHIPPING Development Co., Ltd. entered into two sets of shipbuilding contracts for 2025.
First, Hainan COSCO SHIPPING Development entered into six shipbuilding contracts with Zhoushan Heavy Industry Co., Ltd., each for the construction of a 210,000 deadweight ton (DWT) Newcastlemax bulk carrier.
The total contract price under these agreements is RMB 3,168,000,000 (approximately USD 442 million), excluding taxes.
Second, four additional contracts were signed with China State Shipbuilding Corporation (CSSC) Group sellers, also for 210,000 DWT Newcastlemax bulk carriers.
The total contract price under these four contracts is RMB 2,112,000,000 (approximately USD 295 million), excluding taxes.
On the same day, Hainan COSCO SHIPPING Development, acting as owner and lessor, entered into a lease agreement with COSCO Shipping Bulk Co., Ltd., acting on its own behalf and on behalf of its subsidiaries and/or affiliates, as lessee.
Under the agreement, Hainan COSCO SHIPPING Development agreed to provide leasing services for all ten vessels to COSCO Shipping Bulk Group for a term of 240 months ± 90 days, starting from each vessel’s delivery date.
All vessels are to be delivered between December 2027 and the end of 2028, subject to delay provisions.
The expected annual charter hire per vessel under the agreement is RMB 63.8 million (approximately USD 8.9 million), excluding taxes.
Based on this, the proposed annual cap for the aggregate leasing services under the agreement is RMB 638 million (approximately USD 89 million) for each of the financial years during the lease term, starting from the first year of vessel delivery.
All ten bulk carriers will be methanol- and ammonia-ready Newcastlemax vessels.
The contract prices were determined through arm’s length negotiations with reference to quotations obtained from three shipyards.
The accepted bids from Zhoushan Heavy Industry and CSSC Group sellers represented the lowest prices, with each vessel priced at approximately RMB 528 million (approximately USD 73.7 million).
The shipbuilding prices will be paid in five installments, with the majority to be paid upon vessel delivery. At least 25% of the total consideration will be financed using internal resources of the group, while the remainder will be funded by bank loans and external debt financing.
COSCO SHIPPING Development Co., Ltd. is a Chinese joint stock company. It is primarily engaged in container manufacturing, container leasing, and shipping finance services, with an integrated business model covering leasing, logistics, and asset investment. It is a core subsidiary of China COSCO Shipping Corporation Limited, a centrally administered Chinese state-owned enterprise.
Hainan COSCO SHIPPING Development Co., Ltd. is a wholly owned subsidiary of COSCO SHIPPING Development, incorporated under Chinese law. It focuses on ship leasing and related vessel operations and serves as both buyer under the shipbuilding contracts and lessor under the leasing agreement.
Zhoushan Heavy Industry Co., Ltd. is a limited liability company incorporated in China and a direct wholly owned subsidiary of COSCO Shipping Heavy Industry Co., Ltd., which is in turn wholly owned by China COSCO Shipping Corporation. It specializes in the design, construction, and repair of ships, including large bulk carriers and special vessels.
China State Shipbuilding Corporation Limited (CSSC Group) is a central state-owned enterprise under the direct supervision of the State-owned Assets Supervision and Administration Commission of China. CSSC is China’s largest shipbuilding group, with controlling interests in shipyards such as Qingdao Beihai Shipbuilding Industry Co., Ltd. and China Shipbuilding Industry Trading Co., Ltd., which act as sellers under the relevant contracts.
COSCO Shipping Bulk Co., Ltd. is a limited liability company incorporated in China and a wholly owned subsidiary of China COSCO Shipping Corporation Limited. It provides international and domestic bulk shipping services, including dry bulk, semi-dry bulk, and coastal freight, and serves as the lessee under the 2025 ship leasing agreement.