COSCO Shipping Development has approved orders for 15 newcastlemax bulk carriers in a deal valued at RMB7.92 billion ($1.1 billion), significantly expanding its ship-leasing portfolio. The investment represents one of the largest single bulk carrier ordering commitments in the company's ongoing fleet renewal programme.

Newcastlemax vessels, at approximately 210,000 dwt, represent the largest dry bulk carriers capable of calling at the Port of Newcastle in Australia, the world's largest coal export terminal. The class is heavily employed in long-haul iron ore and coal trades, particularly on routes linking Australian and Brazilian resource exports with Asian importers.

Ten of the 210,000 dwt vessels will be constructed by Shanghai Waigaoqiao Shipbuilding, with the remaining five contracted at Nantong Xiangyu Shipyard. Each vessel is priced at RMB528 million before tax. Both builder selections underscore China's dominant position in large dry bulk construction, as Chinese shipyards continue to capture the majority of global orders for capesize and newcastlemax tonnage.

Delivery schedules differ slightly between the two yards. The five Nantong Xiangyu vessels are slated for delivery between May and December 2030, while the ten Shanghai Waigaoqiao-built ships will follow, with deliveries scheduled between June and December of the same year.

All 15 vessels will be constructed with provisions for future conversion to methanol or ammonia dual-fuel propulsion, aligning with the maritime industry's broader push toward decarbonisation and alternative marine fuels. The IMO's revised greenhouse gas strategy targets net-zero emissions from international shipping by or around 2050, with indicative checkpoints for 2030 and 2040 that are driving widespread adoption of dual-fuel-ready designs across newbuilding orders.

COSCO Shipping Development plans to finance 25% of the total investment from internal resources, with the remaining 75% secured through bank borrowing.

The entire fleet of 15 newcastlemaxes will be leased for a 20-year period to Wai Fung Shipping, a subsidiary of COSCO Shipping Bulk. The annual charter rate for each vessel is capped at RMB59.4 million before tax, a figure that includes the potential cost of future dual-fuel modifications.

This latest order package further extends COSCO's aggressive dry bulk renewal programme, which has already encompassed orders and leasing arrangements covering dozens of new vessels across multiple shipbuilding partners. The long-term intra-group lease structure reflects a broader shipping industry trend in which major owners use captive leasing subsidiaries to manage fleet expansion while securing guaranteed employment for newbuild tonnage.

Source: Splash247