The giant Chinese shipping group China Cosco Shipping Corporation has split its tanker and bulk carrier divisions into two sections, forming two of the largest shipping companies in the world.
The new tanker company, the Cosco Shipping Energy Transportation Co, has a fleet of 105 tankers, totalling 17.04mn dwt and it has also revealed plans to invest in LNG transport, with nine LNG carriers already in the fleet and plans for 25 more LNG ships.
The new Cosco Bulk Shipping owns and operates a fleet of over 380 bulk carriers, with a total of 34.5mn dwt.
The announcement of the formation of the new company came after Cosco Shipping Corp signed a contract with the China State Shipbuilding Corporation in Shanghai for the construction of 10 400,000dwt ore carriers which will transport iron ore for the Brazilian mining company Vale.
The company had earlier signed a 27-year agreement with Vale under which it agreed to transport 16mn tons of iron ore on an annual basis.