Tianjin Zhonghai Huarun, a subsidiary of China Shipping Development Company (CSDC), has signed an agreement with Jiangnan Shipyard to build a 76,000dwt bulk carrier.

The bulk carrier will cost 229.3m yen ($36.1m) and is expected to be delivered by 31 January 2013.

According to reports, Tianjin Zhonghai will fund 80% of the construction cost through a bank loan, and the remainder will be covered by the company’s own cash.

The company is expanding its fleet to increase its coal shipping capacity produced by Huarun Electricity Group.