NOL plans $1.54 billion box ship splurge

Singapore’s NOL Group today signed letters of intent to build 12 new containerships for its APL subsidiary. The ships, all to be built in South Korean shipyards, will include ten 14,000-TEU vessels to be constructed by Hyundai Samho Heavy Industries Co., Ltd; and two 9,200-TEU vessels to be constructed by Daewoo Shipbuilding & Marine Engineering Co.

NOL also said it is upgrading a 2010 order placed with Daewoo for ten 8,400-TEU ships. These vessels will now be upgraded to 9,200-TEU capacity each and will employ a new, more efficient design and technology.

The total consideration for the new vessels and upgrades would be about US$1.54 billion. The ships are scheduled for delivery in 2013 and 2014.

The 14,000-TEU ships will be NOL’s largest and most fuel efficient. NOL said they will be deployed in its Asia-Europe Trade. The 9,200-TEU vessels will likely be employed in the Trans-Pacific Trade.

NOL said it is investing in new, larger vessels to reduce unit capital and operating costs, meet future growth needs and replace older and smaller chartered vessels that will be returned to their owners in the charter market.

The ships will include features designed to conserve fuel and reduce environmental impacts.