China Cosco to Pay $618 Million for New Container Ships


China Cosco Holdings Co. (1919.HK), the flagship of state-owned shipping conglomerate China Ocean Shipping (Group) Co., said Wednesday it would buy five new container ships for $618 million.

The ships–which are 14,500 20-foot equivalent units, or TEUs, in size–will be built by China Shipbuilding Trading and Changxing Shipbuilding, Cosco said in a statement. They will be delivered between 2017 and 2018 and will cost $123.6 million each, Cosco said.

Cosco was considering placing dozens of orders for new cargo ships in 2014 to take advantage of the Chinese government’s new cash subsidies for vessel scrapping, two people familiar with the matter said last year. The purchases would allow the company to upgrade its fleet of aging dry-bulk ships, they said.

Source from : Dow Jones