Cosco to order VLCC octet

China?s largest shipping company, China Ocean Shipping Group (Cosco), plans to spend $700 million in ordering eight very large crude carriers (VLCCs) from Asian shipyards.

Cosco?s president and chief executive, Wei Jiafu, said that the new ships are needed to meet the rapidly rising demand from China?s booming industry and that the newbuilding contracts will be placed with yards in China, South Korea or Japan. Cosco already has two VLCCs under construction at Japan’s Kawasaki Shipbuilding.

The company currently has four 330,000DWT VLCCs in service and Wei announced plans to expand Cosco’s tanker fleet after crude oil imports climbed 33% to 40 million tonnes in the first four months of this year. Forecasts indicate that China could import up to 100 million tonnes this year.

Wei also said Cosco plans to expand its container shipping fleet. The company already has placed newbuilding orders that will increase its container shipping capacity from 260,000 TEUs to 420,000 TEUs by 2007. This would have to be further increased to 600,000 TEUs according to Wei.