New cargo vessel for car exports enters service
June 30, 2011 Category Logistics, Ports & sea transport
China’s domestic carmakers now have a new option to ship their vehicles to overseas markets, after a cargo vessel capable of carrying 5,000 cars – the MV COSCO Tengfei – began operations. The carrier will significantly cut shipping costs and reduce carmakers’ heavy reliance on foreign logistics companies, according to senior executives of China Ocean Shipping (Group) Co (COSCO). Designed by the Shanghai Design Institute and manufactured at COSCO’s Zhoushan shipyard south of Shanghai, COSCO Tengfei and COSCO Shengshi – put into service earlier – will deliver Chinese-made cars to South American countries and carry European cars on the return trip, Han Guomin, CEO and Director of COSCO Shipping, told China Daily. The carrier, 182.8 meters in length, 32.2 meters in width and 14.95 meters in depth, has a deadweight tonnage (DWT) of 14,500. Equipped with three adjustable decks, it can hold cars of different heights. According to Han, it will take COSCO Tengfei 28 days to reach its destination, Santos in Brazil, from Shanghai’s Pudong Port. More than 4,400 cars made by Chery Automobile, Anhui Jianghuai Automobile (JAC), Sany Heavy Industry, and Lonking Holdings are being shipped on the first journey. Shipping costs will fall once the company manages its own fleet, according to Han. Each of the two ships costs USD53 million. According to Xu Lirong, Vice President of COSCO Group, the company started to develop its own carriers after signing a 15-year car shipping strategic cooperation agreement with 17 domestic carmakers, including Chery, JAC and Chang’an in 2006. Chinese car companies exported 72,100 units in May, a rise of 6.79% month-on-month and 53% year-on-year. During the first five months of 2011, China exported 225,400 cars, an increase of 56.7% over the same period in 2010.
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