CSSC-affiliated Guangzhou Shipyard International (GSI) has officially signed shipbuilding contracts with Australian mining giant Fortescue Metals (FMG) for the construction of four 250,000dwt VLOCs. FMG has ordered four vessels of the same type at Yangzijiang Shipbuilding.

The four vessels will be built at Longxue Shipyard with deliveries scheduled between the end of 2017 and early 2018.

FMG said the operation cost of these new vessels will be much lower than the capesize bulkers in the market and the eight vessels will transport about 12% of the company’s iron upon deliveries.