Report: Cosco in Talks on 25-Strong Bulker Order?
- Business & Finance
Chinese shipping giant Cosco Shipping Corporation is reportedly in talks with compatriot shipyards to order up to 25 ships to transport bauxite from Guinea to China, the Wall Street Journal writes.
The ships are said to be intended for a long-term charter with Aluminum Corp. of China (Chalco) which is investing around USD 700 million in the construction of Boffa bauxite project in Guinea.
The construction of the first stage of the project was kick started at the end of October, as reported by Reuters, with the initial production from the mine set to start in 2019. During this stage, the ships are expected to move around six million metric tons of bauxite.
Overall, it is estimated that the project will unleash around 730 million metric tons of bauxite reserves.
Under the project, Chalco is also expected to invest heavily in Boffa’s port and transportation infrastructure.
According to WSJ, Cosco plans to order seven ships in the early stage, pushing the ordering tally to up to 25 vessels as the mine’s production ramps up.
World Maritime News Staff