Cosco Shipping Development Co.,Ltd. (ASX: 601866) has announced a significant newbuild order. The company plans to commission the construction of 15 multipurpose vessels, each with a capacity of 87,000 deadweight tons, specifically designed for grain transport.

The total value of the contract is approximately 4.785 billion yuan, exclusive of tax. The order will be placed by the company's indirectly wholly-owned subsidiary, Hainan Cosco Shipping Development Marine Co., Ltd., with Dalian Cosco Shipping Heavy Industry Co., Ltd., a subsidiary of Cosco Shipping Heavy Industry Co., Ltd.

Upon completion, these newly built vessels will be placed under a long-term operating lease with Huifeng Company, a subsidiary of Cosco Shipping Bulk Co., Ltd. The lease term for each vessel is set at 240 months from the delivery date, with a flexibility window of plus or minus 120 days.

The vessels are scheduled for delivery sequentially between mid-2029 and the end of 2030. Following potential fuel and power system upgrades, the expected annual rental income for each vessel after delivery is projected not to exceed 38.6061 million yuan, exclusive of tax.