July 17, 2007
Danaos supersizes box ship order
Danaos Corporation (NYSE: DAC) announced today that it has agreed with China Shipbuilding Trading Company Limited the upgrading of its earlier order for four 6,800 TEU containerships to four 8,400 TEU post-Panamax vessels and has signed amendments to the relevant shipbuilding contracts.
The vessels will be built by the Shanghai Jiangnan Changxing Heavy Industry Company Limited and are expected to be delivered to Danaos during 2010.
The total capital expenditure commitment for this project is in the region of $500 million and is expected be financed by existing credit facilities and own funds according to the work in progress schedule under the specific terms of the shipbuilding contracts.
"We believe we negotiated a very good deal," said Dr. John Coustas, Chief Executive Officer of Danaos. "We have been able to upgrade the size of the vessels on order with Shanghai Jiangnan Changxing Heavy Industry Company Limited as we expect that we will be able to achieve improved returns when we market these vessels with our clients."
Athens-based Danaos Corporation charters its vessels to many of the world's largest liner companies. Its current fleet of 30 containerships aggregating 133,425 TEUs puts Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is the largest U.S. listed containership company based on fleet size and market capitalization. The company has on order 28 additional containerships aggregating 153,924 TEU with scheduled deliveries up to 2010.