China Shipping orders five 18,000 TEU vessels
May 23, 2013 Category Logistics, Logistics industry
China Shipping, China’s second-biggest shipping group, is set to pay USD2.2 billion on a fleet of gas carriers and ultra-large container ships capable of carrying 18,000 TEU. China Shipping Container Lines (CSCL) will become only the second box line globally, after the Danish Maersk, to operate the 18,000 TEU vessels, which will be the biggest container ships in the world. Maersk is due to take delivery of its first 18,000 TEU Triple-E ship on June 28. South Korea’s Hyundai Heavy Industries has won the bid to build the container ships and discussions are taking place between CSCL and Hyundai to finalize shipbuilding contracts for five vessels. China Shipping management agreed to the order at a board meeting in April. The container ships will be deployed on the Asia-Europe route. Martin Rowe, Managing Director of Clarksons Asia in Hong Kong, estimated each ship would cost in “the region of USD130 million to USD140 million”, depending on specifications. Hyundai has already set up a China Shipping group within its container ship sales team to handle its involvement in the project. China Shipping Development, in partnership with Japan’s Mitsui OSK Lines, has also confirmed a USD1.51 billion order with Shanghai’s Hudong-Zhonghua Shipbuilding for six liquefied natural gas (LNG) carriers. The ships, with a capacity of 174,000 cubic meters, will be used by Sinopec to transport LNG from its Australia Pacific LNG project in Queensland to China, starting in 2016. China Shipping and Mitsui OSK Lines will provide 20% of the financing for the ships, while a Sino-Japanese banking syndicate including ICBC, Bank of China, Export-Import Bank of China and Sumitomo Mitsui Banking will provide the remaining 80%, equivalent to USD1.2 billion. China Shipping narrowed its financial loss to CNY689 million in the first quarter of this year from CNY1.45 billion a year ago. In 2012, the company delivered a profit of CNY523 million, compared with a loss of CNY2.74 billion the previous year.
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