GS 高华证券：中海发展China Shipping Development

01.29 ６页

CSD has signed 2 new contracts of affreightments with Baosteel, China’s largest steel producer. The first is for domestic iron ore shipment from Apr. 2007 until Mar. 2010, with volumes of 6 mn ton p.a. The second is for international iron ore shipment from Australia to China, starting in 2010 for 15 years, using a Capesize vessel. Freight rates will be based on basic freight rate + bunker price adjustment. In our view, this is very positive news. This follows CSD’s first long-haul iron ore contract signed with Shougang in 4Q06, starting in 2010. We believe CSD is moving up the value chain, diversifying beyond its traditional coal & crude oil shipments