China Shipping Development and Baosteel to set up shipping jv

Shanghai: China Shipping Development has announced plans to invest $359m to set up a new shipping joint-venture, Hong Kong Hai Bao Shipping, in partnership with Baosteel Resources Co, a subsidiary of Baosteel Group Corp, the mainland's largest steelmaker, reports Trading Markets. CSD will hold a 51% majority in the new company and the remaining shared will be held by Baosteel. The totoal initial investment in the jv is estimated to be $704m.

Hong Kong Hai Bao Shipping will use $132m in shareholder loans to purchase six VLOCs, two of 300,000-tonnes and four of 230,000-tonnes. The vessels are already under construction for CSD, which will transfer ownership to the new firm.  [13/06/08]