The 260,000-dwt VLOCs will be delivered from November 2016 through to May 2017, Fortescue announced in a statement.
The four large ships will also account for approximately 6% of Fortescue's shipping fleet requirements.
Nev Power, ceo of Fortescue, said the contract represents a strategic decision to secure long term, low cost freight on vessels that will complement infrastructure at Herb Elliott Port and maximise shipped volume.
"We are already in the shipping business, with an annual forecast spend of around $1.5bn a year," Power said. "These vessels are a natural extension of our supply chain and will play a significant role in increasing efficiencies at the port and lowering costs. They also reflect and strengthen our close relationship with China, our largest customer."
Fortescue was instrumental in the research and development of the vessels to ensure design specifications complemented Port Hedland's tidal conditions and shallow natural harbour.
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