China: COSCO Orders Four VLCCs from CSSC

It seems that COSCO’s tanker ordering spree is heading forward.

Namely, China Ocean Shipping Group Co., ordered four very large crude carriers (VLCCs) from China State Shipbuilding Corp (CSSC). The contract was signed on Monday, Seatrade Asia reports.

The value of the contract was not disclosed.

Reportedly, the new carriers will be eco-friendly especially in terms of fuel consumption.

Two months ago, COSCO Group’s tanker unit COSCO Dalian Ocean Shipping Company (DOSCO) revealed its plan to order new VLCCs aiming to raise oil imports of the country and to revitalize its struggling shipbuilding industry. Some maritime industry players reported that the order reaches up to 50 VLCCs which goes in line with the intentions of the Chinese Government to expand its VLCC fleet with 80 new units, thus gaining more control over the country’s energy supply chain.

Until now three domestic shipyards appeared as the contractors, those being: COSCO Dalian Shipyard, CSSC Guangzhou Longxue Shipbuilding andNantong COSCO KHI Ship Engineering (NACKS).

The shipbroker Clarkson Plc. estimated the newbuildings’ price to be just under $90m per ship.

[mappress]

Shipbuilding Tribune Staff, November 14, 2012; Image: CSSC