Shanghai: China Shipping Development (CSD) and Cosco have together announced that they have established a joint venture, China Ore Shipping, in Singapore. CSD and Cosco’s bulk shipping division Cosco Bulk Shipping holds 49% and 51% equity shares in the jv respectively.
China Ore Shipping has signed an agreement with Brazilian mining giant Vale for the purchase of four Very Large Ore Carriers (VLOCs) for $445m. The vessels will be delivered on June 2 and will be chartered to Vale under a COA deal for twenty years, with an option to extend for another five years.
Earlier in the week, Vale concluded a deal with China Merchants Energy Shipping (CMES) for the sale of four VLOCs.
China Exim Bank will provide financing for the deals.