China Shipping to spend US$3.3 billion on vessels

China Shipping Development plans to spend 23 billion yuan (US$3.3 billion) to buy 59 vessels over the next five years.

This will more than double its capacity to ride an anticipated upswell in global trade, its top executive said. Oil and coal carriers will build up to a fleet of more than 180 ships to meet the heavy resource needs of China's fast-growing economy. The world's fourth-largest economy currently maintains a total capacity of 7.82 million DWT, Chairman of China Shipping Development, Li Shaode said. The 59 vessels, to be delivered in the years until 2012, come with a collective capacity of 8.69 million DWT and will more than double the firm's shipping capability. China Shipping Development is also reports its 2007 net profits as jumping a staggering 66 percent, following a venture, late last year, into the iron ore business. Profits for last year have jumped from 2.8 billion yuan (US$0.4 billion) in 2006 to hit 4.6 billion yuan (US$0.66 billion). China Shipping Development says the big jump in earnings is largely due to expansions in its core business of ocean shipping. In any case, the fast-growing economy has meant much higher demand for oil, coal and iron ore.
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