Cosco Shipping Energy Transportation (CSET), the energy shipping unit of Cosco, has set up a new tanker subsidiary in Hainan as part of its strategy to develop its shipping business in the region.
Under the plan, Cosco will use RMB2.4bn ($343m) from a RMB5bn fundraising scheme, announced earlier this year, to replenish working capital of CSET Hainan, and will transfer nine newbuildings made up of four VLCCs, three suezmax tankers and two aframax tankers into the fleet of the Hainan unit.
The vessels are currently under construction at Dalian Shipbuilding Industry and Guangzhou Shipyard International.
Cosco said the new unit will help the group better implement the national maritime strategy and facilitate the development of a free trade zone at Yangpu Port of Hainan. Beijing is pouring considerable resources this year to develop its southern island into a shipping hub with state-run Cosco tapped to help this transformation.