Grand China expanding fleet

Grand China Shipping unit Grand China Logistics has gone into partnership with Zhoushan Jinhaiwan Shipyard to build 18 Capesize and 12 Kamsarmax bulkers worth $2bn for delivery in 2012. It is also negotiating to take a majority stake in the shipbuilder.

Grand China Shipping managing director Sun Che said the tie-up with Zhoushan Jinhaiwan would pave the way for the start-up of its Grand China Logistics business.

“Grand China Logistics is a newly established company. I think it is a good timing to expand its fleet because of the low newbuilding cost,” Sun said. He said the company believed there would be strong demand for new ships based on its integrated logistics business model. He added the company was not worried about overcapacity.

The move into bulk carriers represents the latest move by Grand China Shipping to establish a land, sea and air logistics network across China. In addition to the newbuilding orders, Grand China Logistics has purchased a second-hand bulker. Sun said the company would also look for opportunities to purchase abandoned newbuilding orders from other shipyards but no plans to place further newbuilding orders in the near future.

Sun said the deal to acquire a 50% stake in Zhoushan Jinhaiwan was yet to be finalized. He also refused to confirm the size of the stake it was looking to buy.