Hanjin Shipping has signed two consecutive voyage contracts with Korea Southern Power (Kospo) for the transportation of soft coal.

One contract is for 10 years and the other for 15 years, Hanjin Shipping announced on Thursday.

Two capesize vessels will be deployed in the transportation of 2.5m tonnes of soft coal on an annual basis starting from the second half of 2016 to the second half of 2031, creating a total revenue of approximately KRW320bn ($303.49m) for the shipping firm.

Meanwhile, Hanjin Shipping also announced that it is spinning off its dedicated dry bulk business to private equity firm Hahn & Company. The deal, which will allow the shipping firm to secure KRW300bn, will also help in transferring finances and debts of KRW1.4trn to the new joint venture with Hahn & Company.