China Shipping Devt to buy 8 bulk cargo carriers for 428 mln usd

China Shipping Development Co Ltd (SHA 600026; HK 1138) said it has signed an agreement to buy eight bulk cargo carriers of 76,000 dead weight tons each from Jiangnan Construction Group Ltd for a combined price of 428 mln usd.

In a statement filed with the Shanghai Stock Exchange, the company said thecarriers will be delivered between February 2011 and June 2012.

The company said that it has also signed an agreement with Baosteel Resources Co Ltd, a unit of the country's largest steelmaker Baosteel Group, to set up a joint venture, Hong Kong Hai Bao Shipping Co Ltd.

The joint venture, with registered capital of 8 mln usd, will focus on imported iron ore and other bulk cargo services, ship leasing and international bulk cargo.

China Shipping Development and Baosteel Resources will hold 51 pct and 49 pct of the joint venture. Total investment in the venture is expected to reach 703.66 mln usd.

China Shipping will also transfer two 300,000 deadweight-ton vessels and four 230,000 deadweight-ton vessels to the joint venture after it is established, it added.

Source: zachary.wei@xfn.com