NOL invests $1.54B in new ships, vessel upgrades

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Singapore carrier Neptune Orient Lines (NOL) has sent orders for ten 14,000-TEU vessels and two 9,200-TEU vessels to be built in South Korea. It will also upgrade ten 8,400-TEU ships it ordered from South Korea last year. NOL signed the letters of intent on 15 June 2011 for the new vessels and ship upgrades that have a total investment cost of about $1.54 billion.

The 14,000-TEU vessels are to be constructed by Hyundai Samho Heavy Industries for deployment on the Asia-Europe loop. The 9,200-TEU vessels will be built by Daewoo Shipbuilding and Marine Engineering and will likely run on the trans-Pacific Trade.

NOL also plans to upgrade ten 8,400-TEU ships it ordered from Daewoo last year. The vessels will be enlarged to 9,200-TEUs of capacity each and use more fuel-efficient design and technology.

The new ships and upgraded vessels are set for delivery in 2013 and 2014.

NOL said the investments will reduce unit capital and operating costs, meet future growth needs and replace older and smaller chartered vessels that will be returned to their owners.