Fujian Guohang Ocean Shipping is expanding its business beyond traditional dry bulk shipping, moving to develop an integrated fleet that combines oil tankers and dry bulk ships.
The company has made a significant change in its capital markets strategy, formally scrapping plans for a Mainboard H-share listing in Hong Kong and instead choosing an A-share private placement targeting selected institutional investors. The new fundraising plan is meant to support Guohang’s wider development plans.
The total proceeds from the private placement will be limited to RMB700 million under the revised financing plan. Of that amount, RMB680 million will be used to fund a high-end vessel construction project with a total investment of approximately RMB2.491 billion.
The shipbuilding program will comprise three 62,000 dwt multi-purpose heavy-lift vessels and three 115,000 dwt LR2 product tankers, providing Guohang with a far more diversified fleet and growing its share of specialized cargo and petroleum product transportation.
The move comes after a strategic cooperation framework agreement signed with Cosco Shipping Energy Transportation earlier in September. Under the deal, the two companies will deepen their long-term strategic partnership and explore joint operations involving the new-built tanker vessels.
Guohang Ocean Shipping’s existing fleet is dominated by Panamax and Handysize dry bulk carriers and its business traditionally focuses on conventional bulk cargo transportation.
The newbuilding program is aimed at two areas in which the company has had little exposure: specialized heavy cargo logistics and petroleum product transportation. With the addition of both heavy-lift vessels and LR2 tankers, Guohang is effectively reshaping its business model from that of a pure dry bulk operator to a dual-core shipping enterprise built around dry bulk and tanker operations.
The strategy represents a substantial change in the company’s development direction as it looks to build a more diversified fleet and strengthen its position in several segments of the shipping market.
