August 30, 2008

China Shipping to spend USD 3.3 billion buying vessels

Reuters reported that China Shipping Development plans to spend CNY 23 billion to buy 59 vessels over the next five years, more than doubling its capacity to ride an anticipated up swell in global trade.

Mr Li Shaode chairman of China Shipping Development said the oil and coal carrier, which is building up a fleet of more than 180 ships to meet the heavy resource needs of China's fast growing economy, the world fourth largest, currently maintains a total capacity of 7.82 million dead weight tonnes.

He said the 59 vessels, to be delivered in the years until 2012, come with a collective capacity of 8.69 million DWT and will more than double the firm's shipping capability.

Mr Li told Reuters early this month that his firm which began shipping iron ore for steel making last year intended to spend about USD 2.8 billion over five years to double its capacity.