Bulk carriers help fill Rongsheng order book

China Rongsheng Heavy Industries Group, the mainland's largest privately owned shipyard, is set to deliver at least 35 ships this year out of a total order backlog of 111 vessels worth US$7.1 billion.

'We estimate no less than 35 vessels will be delivered this year,' said Cynthia Zhang Jin from the firm's investor relations division.

The ships are expected to include the first of a dozen 400,000 deadweight tonne (dwt) Chinamax iron ore carriers ordered by Brazilian mining company Vale. The first vessel was due to be delivered earlier this year but was postponed at least until next month. A further four 400,000 dwt ore carriers were ordered by Oman Shipping from China Rongsheng Heavy Industries in 2009.

Confirmation of this year's ship deliveries came after the shipyard said it recently secured orders from three European shipowners for 10 205,000 dwt dry cargo Capesize bulk carriers and four 6,600 teu (20-foot equivalent unit) container ships.

Zhang said the shipyard, which listed in Hong Kong at the end of last year, was in 'no position to reveal' details of the contract prices for the new ships. But ship brokers said a 205,000 dwt bulk carrier typically cost around US$65 million at a mainland yard, while a 6,600 teu container ship cost between US$65 million and US$70 million.

The shipbuilder said the deal for the Capesize ships was placed by a European ship owner and was one of the largest contracts won by a mainland shipyard this year.