OOIL to spend US$477m on four container ships
Orient Overseas (International) Limited, the Tung family-controlled shipping company, is splashing out US$477 million (HK$3.72 billion) on another four container vessels. The ships, which can carry 8,063 20-foot containers, will be built by Samsung Heavy Industries of South Korea. OOIL, parent of Orient Overseas Container Line (OOCL), placed orders in July with Samsung for another four container ships. The new vessels are due for delivery between the fourth quarter of 2009 and first-quarter 2010, the global container transport operator said, adding that it is arranging financing for 80 percent of the purchase price, while the remainder will be funded from internal resources. "It is the view of the directors that ownership of the vessels will improve the operating efficiency and profitability of the group," the company said in a statement. It added, the company's fixed assets will increase following delivery of the vessels, while current assets will decrease and long-term liabilities will rise depending on the proportion of the purchase price funded from internal resources and external financing.
OOIL has been strengthening its fleet as it benefits from booming global trade. The container carrier moved one million TEUs of cargo in the third quarter, but revenue per container fell 5.2 percent year on year. A limited supply of ships and international trade have helped revenue growth at global container carriers over the past two years. Meanwhile, China Shipping Development is expected to buy 50 dry bulk vessels from its parent company. The vessels are on average 16 years old.
