August 31, 2017

Waigaoqiao shipyard close to a 9.6b-yuan deal for 9 mega ships

Shanghai Waigaoqiao Shipbuilding Co Ltd (SWS) signed a letter of intent with a major French shipping company, CMA-CGM, for delivering nine container ships with a capacity of 22,000 TEUs each. The order is worth 9.6 billion yuan (US$1.45 billion) by estimate.

SWS snatched the deal from its South Korean rivals Hyundai Heavy Industries, Sumsung Heavy Industries, and Daewoo Heavy Industries.

The ships with dual-fuel engines and powered by LNG (liquefied natural gas) are to be delivered by 2020.

The 22,000-TEU vessels will be the largest container ships in the world, overshadowing the 21,000-TEU vessel built by Sumsung Heavy Industries.

Two months earlier, Hudong-Zhonghua Shipbuilding Co Ltd, a sister company of SWS, secured a 5.2-billion-yuan (US$788 million) order from Mitsui O.S.K. Lines. Hudong-Zhonghua will design and build four 174,000-ton LNG tankers for the Japanese company. The order reflects the competitiveness of Chinese shipbuilders.

In the first six months of 2017, Chinese shipyards secured orders totaling 2.9 million CGT (compensated gross ton), more than Korean competitors’ 2.83 million CGT, according to data from Clarkson Research.