China COSCO Holdings Company announced through a regulatory filing on December 23 that the Chinese shipping company planned to place newbuilding orders for four 64,000 dwt Handysize bulkers and five 9,400 teu containerships to promote its core competitiveness through restructuring its boxship and bulker fleets while its board of directors ratified the newbuilding project after deliberation.

The company added that related details would be released later through another regulatory filing when a newbuilding contract is signed officially.

Regarding this, Chinese shipbuilding industry says that this is the company’s first large newbuilding project not seen for the past five years and analyzes that the project might be driven by the Chinese government’s policy of ‘Subsidy for Ship Demolition’.

A related officer said that the government determined to provide a subsidy for ship demolition and COSCO planned to purchase eco-friendly bulkers capable of saving energy to take advantage of the policy. Also, the company is said to be hoping to cut fuel costs and other production costs for operations.  

Moreover, not a few industry watchers are reportedly saying that this newbuilding project is reflected by COSCO’s positive prospects towards future shipping economy along with the opportunity of the government’s subsidiary policy.