Tianjin Zhonghai Huarun, a subsidiary of China Shipping Development Company (CSDC), has signed an agreement with China Shipbuilding & Offshore International Company (CSOC) and Bohai Heavy Industry to buy four bulk carriers for 700m yen ($110m).
The four vessels will be of 45,000dwt each and are expected to be delivered between March and September 2013.
The vessels are being acquired to increase the annual shipping capacity of Tianjin Zhonghai Huarun for the transportation of coal produced by Huarun Electricity.
Tianjin Zhonghai Huarun’s current annual shipping volume is approximately 14% of the coal expected to be transported by Huarun Electricity.
Upon the delivery of the bulk carriers, the company expects the shipping volume to increase by 50%.