China Shipping Development and Cosco establish Singapore jv for Vale VLOCs

China Shipping Development and Cosco establish Singapore jv for Vale VLOCs

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.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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