COSCO in $1.51 billion newbuild spree

SEPTEMBER 10, 2015 — In an aggressive expansion of its capacity, Chinese container shipping giant COSCO yesterday announced it had entered shipbuilding contracts with domestic shipbuilders worth a total $1.51 billion for eleven giant box ships in the 19,000 – 20,000 TEU category for delivery in 2018.

The COSCO newbuild splurge is the largest since the $1.8 billion Maersk Line order placed in June with Daewoo for eleven 19,630 TEU containerships. Maersk says those ships are intended for the Asia – Europe service and will replace smaller, less efficient vessels.

COSCO says it “entered into the shipbuilding agreements in order to improve the shipping capacity of the fleets of container vessels of the Company and upgrade the fleets.”

DACKS (indirect COSCO subsidiary Dalian COSCO KHI Ship Engineering Co., Ltd) will build two of the ships for a total $270.6 million.

NACKS (50% COSCO-owned Nantong COSCO KHI Ship Engineering Co., Ltd) will build four ships for a total $541.2 million).

China State Shipbuilding Corporation’s Shanghai Waigaoqiao Shipbuilding  will build three ships for a total $418.5 million.

China Shipbuilding Industry Corporation’s Dalian Shipbuilding will build two ships for a total $279 million.