Cosco, CSDC Form Dry Bulk JV

first_imgzoom China Cosco Holdings and China Shipping Development Co (CSDC) have agreed to establish a joint venture company in Singapore that would focus on transportation of iron ore and other dry bulk shipping activities.The joint venture would be named China Ore Shipping. Majority stake in the JV would be taken by Cosco, 51%, and 49% would be owned by CSDC, the Chinese companies said in a filing to a stock exchange.As informed, Cosco will invest USD 168.3 million whereas CSDC will assign USD 161.7 million in their joint venture, which is expected to “bring about a steady stream of income and believed the deal will benefit the company and its shareholders.”The move comes, following Vale’s announcement on two separate deals with the Chinese firms, Cosco and China Merchants Energy Shipping Co., Ltd. (CMES), that are expected to result in the sale of up to eight very large iron ore carriers, known as Valemaxes.Vale signed two three-party Memorandums of Understanding (MOUs) for potential financing and loan facilities with the Export-Import Bank of China (China EXIM Bank) and the two Chinese shipping companies on Tuesday.The two memorandums discuss financing cooperation in iron ore shipping and define the basis for future cooperation among Vale and its Chinese partners.According to each Memorandum, the China EXIM Bank will consider providing a loan facility of up to USD 1.2 billion to both Cosco and China Merchants, respectively, to facilitate the two shipping companies’ provision of iron ore shipping services to Vale.last_img read more