CHINESE state-owned ocean carrier Cosco Shipping Holdings Co Ltd is to pay about US$1.78 billion to have contracts for 14 containerships transferred from subsidiary Cosco Shipping Development Group so that it will own the vessels, rather than lease them from the subordinate company, the shipping line said in a statement.

Cosco Shipping Development Group was formerly known as China Shipping Container Lines (CSCL) before it was merged with China Ocean Shipping Company (Cosco) last year at the behest of the Chinese government.

The transfer involves contracts for six 21,000 TEU ships being built at Shanghai Waigaoqiao Shipbuilding Co Ltd that were ordered in October 2015 and eight 13,500 TEU vessels under construction at Shanghai Jiangnan Changxing Shipbuilding Co Ltd ordered in July 2015, according to American Shipper.

Cosco Shipping Holdings said its "directors consider that the acquisition of the container vessels under the shipbuilding assignment agreements would be more beneficial to the future strategic development and operational efficiency of the group compared to chartering the container vessels."

The ships are scheduled for delivery from 2018 to 2019, Cosco said.