China Shipping Development Co., Ltd. entered into a USD 65.2 million or CNY 445 million agreement upon building of two 76,000-ton bulk cargo ships.
China Shipping Development Co., Ltd. entered into a USD 65.2 million or CNY 445 million agreement upon building of two 76,000-ton bulk cargo ships with China State Shipbuilding Corporation (CSSC) and the Jiangnan Shipyard. Upon the latest announcement, the Shanghai-listed company will pay for total expense in five tranches in line with the building progress, and about 20% and 80% of its payment will be the self-financing and bank loan, respectively. The two bulk carriers are scheduled to be separately delivered in September and October 2010.
Along with the further mercerization reform of China's electric power industry, more coal-fired power plants require the shipping through large-scale vessels. The 76,000-ton panamax bulk cargo ships can satisfy these power plants' increasing coal transport demand, forming a sharper competitive edge.
China Shipping Development, at present, takes only four 76,000-ton panamax bulk carriers as one of its pillar ship models, and such a small number affects its foreign trade yields. Notably, the two to-be-built vessels with a higher cost performance can be used about one year earlier than other eight ones that were ordered more previously.