Guangzhou Shipyard International (GSI) has secured an order from Australian miner Fortescue Metals Group to construct four 250,000 dwt very large ore carriers (VLOCs).

Fortescue said earlier this month that it had launched talks for the construction of four highly efficient VLOCs.

These ships are expected to be delivered in late 2017 and early 2018 with the majority of payments also due on delivery.

The investment will initially be funded by existing operating cash flows, according to Fortescue, which expects the operating cost of these vessels to be well below the current forward market rates for large capesize vessels.

The company also ordered four VLOCs in June from Yangzijiang Shipbuilding for a total investment value of US$275 million.