COSCO subsidiary to invest $200m in container fleet

COSCO Shipping Development Co., the Chinese shipping conglomerate’s container leasing arm, has entered into a contract to purchase 154,000 units of second-hand containers from a third party seller, according to multiple news sources.    China’s COSCO Shipping’s container leasing arm, COSCO Shipping Development Co. (CSDC), has agreed to buy 154,000 units of second-hand containers for $200.38 million, according to reports from multiple news sources.
   CSDC subsidiary Florens Container Investment has entered into a contract with CLC II to purchase the containers, though the company did not disclose the ultimate owner of CLC II, saying the sellers are third parties independent of the company. The acquisition will be funded by internal resources and external debt financing, said CSDC.
   “As the company strives to develop its container leasing business in the long run and become an industry-leading leasing company with unique competitive edge on the basis of the current leasing business, the acquisition is in line with the business of the group and will expand the scale in its container leasing business,” said CSDC in a statement. “In addition, the acquisition would increase the proportion of self-owned containers of the group and ensure that the group’s demand for containers is satisfied.”
   The latest news follows COSCO Shipping’s $6.3 billion blockbuster acquisition of Orient Overseas (International) Limited (OOIL), parent of Hong Kong-based container carrier OOCL, a deal that would give COSCO more than 400 vessels with a capacity exceeding 2.9 million TEUs including orderbook.