COSCO Shipping Development is investing approximately $1.1 billion to build 15 new Newcastlemax bulk carriers, expanding its ship-leasing business and preparing its fleet for a future transition to green fuels.

Newbuild Plan for 15 Newcastlemax Bulk Carriers Officially Approved

COSCO Shipping Development has officially approved a plan to build 15 new Newcastlemax-class bulk carriers. The strategic investment aims to expand the scale of the company’s ship-leasing portfolio, with total committed capital reaching RMB 7.92 billion (approximately $1.1 billion).

Orders Allocated to Key Shipyards

The large-scale project has been split between two reputable shipyards:

• 10 vessels with a deadweight tonnage of 210,000 DWT will be built by Shanghai Waigaoqiao Shipbuilding.
• The remaining 5 vessels have been contracted to Nantong Xiangyu Shipyard.

The investment cost per vessel has been set at RMB 528 million (before tax).

The Xiangyu-built vessels are expected to join the fleet between May and December 2030. Following this timeline, the Waigaoqiao-built vessels will be delivered progressively between June and December of the same year.

Notably, in line with the trend toward sustainable maritime development, all 15 vessels are designed with flexible structures, ready for future upgrades and conversion to green-fuel propulsion systems such as methanol or ammonia.

Financing Structure and Long-Term Operating Strategy

COSCO Shipping Development said it will fund 25% of the project using its own capital, with the remaining 75% arranged through credit financing.

Once completed and delivered, the vessels will be deployed under a 20-year long-term lease agreement with Wai Fung Shipping, a member unit under COSCO Shipping Bulk.

The annual lease rate per vessel will be capped at RMB 59.4 million (before tax). This rate has been calculated to cover potential future costs associated with upgrading and retrofitting the vessels for dual-fuel systems.

The new investment is part of COSCO Shipping Development’s long-term strategy to expand its ship-leasing operations and modernize its bulk carrier fleet. To date, this long-term strategy has resulted in a series of newbuild orders and lease agreements, covering dozens of new vessels across the global maritime market.