Shandong Shipping sets up bulker joint venture with ICBC Leasing

Shandong Shipping sets up bulker joint venture with ICBC Leasing

Chinese state-run shipping major Shandong Shipping has announced plans to set up a joint venture with ICIL Maritime Leasing, a Hong Kong-based unit of ICBC Leasing.

Shandong Shipping and ICIL Maritime Leasing will own a 30% and 70% stake respectively in the joint venture, which is expected to be registered in the Marshall Islands.

The joint venture will finance the construction of four 82,000 dwt kamsarmax bulk carriers, which will be fixed to agricultural commodities trader Bunge under long term charter agreements.

Separately, Shandong Shipping plans to issue overseas bonds to raise up to $250m. The proceeds will be used to repay domestic and overseas debts.

Shandong Shipping currently owns a bulker fleet of 14 vessels, and has another 10 capesize bulkers on order at Waigaoqiao Shipbuilding.

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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