CSD, Cosco JV to Buy Vale's Bulk Carriers
By Aiswarya Lakshmi
Thursday, May 21, 2015
China Shipping Development (CSD) and Cosco have established a joint venture (JV), China Ore Shipping Pte., in Singapore to purchase four 400,000 dwt ore carriers from Vale and operate them.
CSD and Cosco’s bulk shipping division Cosco Bulk Shipping holds 49% and 51% equity shares in the JV respectively.
China Ore Shipping will buy four second-hand valemax vessels from Vale Shipping Singapore Pte., a unit of the world's major iron-ore producer, for 445 million U.S. dollars, says a joint statement from the companies.
It has signed a 20-year pact with Vale, under which Vale will charter ships owned by China Ore Shipping to transport the steel-making raw material to the world's second-largest economy.
China Cosco said it plans to fund the purchase of the four vessels, which are due for delivery in June, from internal resources and bank borrowing.
Earlier in the week, Vale concluded a deal with China Merchants Energy Shipping (CMES) for the sale of four VLOCs.