Home » Maritime » NOL signs contracts for 12 new ships

Neptune Orient Lines (NOL) confirmed June 27 that it has signed contracts with two Korean shipyards to build 12 new container vessels, including ten of its largest and most efficient vessels.

The confirmation follows the group’s announcement on 15 June that it signed letters of intent with Daewoo Shipbuilding & Marine Engineering and Hyundai Samho Heavy Industries for its US$1.54 billion ship-building program.

The signed contracts are for:

  • Ten 14,000-TEU vessels with Hyundai Samho Heavy Industries;
  • Two 9,200-TEU vessels with Daewoo Shipbuilding & Marine Engineering; and
  • Upgrade of ten 8,400-TEU vessels to 9,200-TEU vessels with Daewoo Shipbuilding & Marine Engineering.

Singapore-based NOL also said it will charter five of the 14,000-TEU container vessels to alliance partner, Mitsui O.S.K. Lines (MOL), when they are delivered in 2013 and 2014.

NOL and MOL said they reached the three-year charter arrangement to upgrade service in The New World Alliance. NOL’s container shipping line—APL—is part of the alliance, along with MOL and Hyundai Merchant Marine.

NOL said its decision to order the ten 14,000-TEU ships took into consideration the charter agreement, viewing the purchases as a means of balancing the alliance’s capacity contribution, and allowing its shipping unit, APL, to increase its capacity gradually.

All of the ten 14,000-TEU container ships for delivery to NOL between 2013 and 2014 will be deployed on existing Asia-Europe routes. Half will be operated by APL, the other half by MOL.

NOL also said it had received firm loan offers totaling about US$1.14 billion from various banks and financial institutions for the 12 new vessels. The rest of its new ship-building program will be funded by bonds recently issued by NOL and from internal resources.

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