China Shipping Development Co Ltd said on Friday it planned to triple its oil tanker and cargo vessel fleets by the end of 2010 to increase its share of a fast-growing market.
China's second-largest shipping firm said in a statement it expected total capital expenditure to exceed 20 billion yuan (US $2.42 billion) over the next seven years.
China Shipping also said it had decided against exercising an option granted by its controlling shareholder to buy an interest in China Shipping Container Lines Co Ltd.
The Hong Kong listed China Shipping said it would focus on its principal operations - oil and dry bulk cargo transportation.
"The company, after taking into consideration development strategies and funding requirements, considered the exercise of the option not appropriate," it added.
Shares of China Shipping recouped early losses and were unchanged at HK $6.20 in late Friday morning trade.
The stock is up more than 240 percent in the past 12 months on a strong recovery in the world shipping market.
The company said in light of China's rapid economic growth and the government's efforts to build up oil reserves, there would be further scope for growth in its oil and dry bulk cargo transportation businesses.
China Shipping also said its parent, China Shipping (Group) Co, intended to apply for the conversion of China Shipping Container Lines into a joint stock limited company in January 2004.