CHINA Shipping Development Co said it will order 14 dry-bulk ships for 2.88 billion yuan (US$422 million) to boost its shipping capacity after its first-half profit increased due to a rebound in rates.

Shenhua China Shipping Co, a unit of CSD, will pay 2.4 billion yuan for the 12 bulk carriers of 462,000-ton capacity each, the company said in a statement to the Shanghai Stock Exchange.

Jiahe Shipping, another CSD unit, will invest 480 million yuan for two dry-bulk carriers of 530,000-ton capacity each.

The company's profit in the first half surged 60 percent from a year ago to 979 million yuan, or 0.29 yuan per share, according to a separate statement. Total revenue rose 32.7 percent to 5.59 billion yuan in the first six months.

Income from oil transport contributed 306 million yuan, or 51 percent, to its total revenue in the period, while transporting coal made up 31 percent. "Overcapacity worries still exist in the shipping market and fluctuation in economic recovery added to the uncertainties of the global shipping industry in the second half," the company said.