Zhuhai Port, a major seaport in the Pearl River Delta next to Macau, has announced a plan to issue around 158m new shares to 10 designated investors to raise around RMB1.48bn ($224m) to fund the establishment of a bulker fleet.
The net proceeds will be used to fund the acquisition of a total of 55 vessels including both newbuildings and secondhand vessels, all of which will be used for bulk transport in the domestic river and coastal regions.
According to the plan, the port’s shipping unit, Zhuhai Port Shipping, will order forty 3,500 dwt river multipurpose vessels, two 22,500 dwt bulk carriers and two 45,000 dwt bulk carriers. It also plans to acquire three 12,000 dwt secondhand bulk carriers between 2018 and 2020.
The company will also establish a joint venture with Perfect Logistics and order two 22,500 dwt bulk carriers.
In addition, Zhuhai Port will also order six tugboats.
Zhuhai Port believes the fleet expansion plan fits its strategy to transform into an integrated logistics solution provider and will meet the growing demand for coal, grain and steel shipping. Many Chinese ports have developed their own fleets, most notably Shanghai.