Sinotrans Shipping has entered into a deal to construct four 64,000 dwt bulkers at an affiliated Chinese shipyard for a total cost of $103.2m.

The four bulkers will be built at China Chang Jiang National Shipping Group Corporation Jinling Shipyard, and they are scheduled for delivery in the second half of 2015.

China's state-owned Sinotrans & CSC Holdings owns 68.1% in Sinotrans Shipping and wholly owns Jinling Shipyard.

Hong Kong-listed Sinotrans Shipping said the newbuilding deal was signed “in view of the current relatively low level of construction cost of new vessels”.

It added that the acquisition of the energy-saving new vessels will enable the company to optimise the composition of its fleet, expand the capacity of its self-owned fleet of dry bulk vessels and add flexibility to its chartering business.