Cosco Shipping has announced a $1.5 billion order for ten new containerships.
The order was placed by COSCO Shipping Holdings at COSCO Shipping’s wholly-owned shipyard subsidiary COSCO Shipping Heavy Industry (Yangzhou).
The order comprises six ships of 14,092 TEU capacity for an aggregate price of $876 million and four 16,180 TEU capacity ships for $630 million.
Delivery of the 14,092 TEU ships is planned from December 2023 to September 24, while the 16,180 TEU ships will deliver from June 2025 to December 2025.
COSCO said in will finance at least 40% of the total $1.496 billion consideration with “internal resources” with the remaining from bank borrowings.
“The Shipbuilding Transaction is in line with the 14th Five Year Plan of the Group,” COSCO Shipping Holdings said in a stock exchange filing. “The Group can benefit from the Shipbuilding Transaction to maintain its first-tier position in the industry and corresponding transportation capacity, and the Shipbuilding Transaction can also increase the competitive advantage of the Group and compel the Group’s expansion of new markets. In addition, the Shipbuilding Transaction can lower the cost of the transportation network and increase the core competitiveness of the Group.”
According to Alphaliner, COSCO Group ranks as the third largest shipping line by capacity with nearly 500 ships representing a little over 3 million TEUs, amounting to about 12% market share. This latest order will add about 150,000 TEU capacity.