Fortescue revealed two weeks ago that it is negotiating to acquire four more VLOCs from an unnamed Chinese shipyard, following an earlier deal in June when it ordered the first four VLOCs from Yangzijiang Shipbuilding.
Hong Kong-listed GSI said the order win from Fortescue will “significantly enhance its market competitiveness, in addition to raising the company’s branding into the international stage.”
Fortescue mentioned earlier that the VLOC newbuildings are expected to be delivered in late 2017 to early 2018. Financial details of the GSI contract were not revealed.
An earlier order for four VLOCs at Yangzijiang was valued at a total of $275m, and construction will commence in the second half of this year with deliveries scheduled between November 2016 to May 2017.
Fortescue expects the operating cost of these ships to be well below the current forward market rates for large capesize bulkers. The new VLOCs are also expected to complement port infrastructure to improve load rates and efficiencies.
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