Bangladesh Shipping Corporation (BSC) signed a memorandum of understanding to order 16 bulk carriers with China Harbour Engineering Company (CHEC).

The new vessels will be used to transport coal for use by power plants in Bangladesh, according to the country's Daily Star newspaper.

No financial details about the deal were disclosed and neither was the specific size of the vessels, but the newspaper said that the order comprises six "mother" and ten "light" bulk carriers.

Yeasin Afsana, BSC's executive director of finance, and Huang Daojun, CHEC's authorised representative in Dhaka, reportedly signed the MoU as representatives in presence of Bangladesh's shipping minister Shajahan Khan.

BSC already has three 38,800dwt handysize bulk carriers under construction at China's Jiangsu New Yangzijiang shipyard, set for delivery in 2018.