China Shenhua and CSD tie-up.
LEADING Chinese coal producer China Shenhua Energy has teamed up with China Shipping Development to invest Yuan4.6bn ($676m) in a shipping venture in an effort to optimise its coal production and transportation.
The two companies have committed to invest capital into the venture, New Century Shipping, between 2010 and 2013. China Shipping Development will contribute Yuan195m and China Shenhua Energy will inject Yuan222m this year.
China Shipping Development and China Shenhua Energy will hold 49% and 51% interests, respectively, in the venture when the first phase of investment is completed later this year.
China Shenhua Energy secretary Huang Qing said: ?Through the partnership with China Shipping Development, the company can strengthen and integrate its operations in the areas of mining, logistics, electricity and transportation in order to accommodate the increased demand for coal transportation in China.?
New Century Shipping owns eight bulk carriers of 10,000 dwt-69,000 dwt with a total capacity of 319,000 dwt.
Another five 57,000 dwt and 76,000 dwt panamax newbuildings are scheduled to for delivery in 2010-2011.