Taiwanese shipbuilder wins order for 5 14,000 TEU container ships
2013-08-17 09:00
Yang Ming Marine Transport leases 5 14000TEU container ships from Seaspan. These will be built by Taiwan Shipbuilding Corporation (CSBC), marking CSBC's first order for a container ship exceeding 10,000 TEU. The total value of the 5 ships is $550 million.
It is understood that Yang Ming Marine Transport leased 15 14000TEU container ships from Seaspan. Of these, an order for 5 14000TEU container ships was previously awarded to Hyundai Heavy Industries, with delivery expected in 2015.
The remaining 10 ships in Yang Ming's order led to a competition between CSBC and Hyundai Heavy Industries. Ultimately, CSBC prevented Hyundai Heavy Industries from securing the entire order. The Yang Ming board of directors approved on the 13th that 5 14000TEU container ships would be built by Hyundai Heavy Industries, with delivery between March and June 2015; the final 5 ships will be built by CSBC, with delivery expected from June 2016 onwards.
Yang Ming Chairman, Lu Fenghai, pointed out that these 5 14000TEU container ships will help CSBC transform and upgrade, enhance CSBC's international reputation, improve CSBC's competitiveness in securing international orders, and are of significant importance in supporting the continued development of Taiwan's shipbuilding industry.
Industry insiders revealed that because Hyundai Heavy Industries secured the first part of Yang Ming's 15 14000TEU container ship order, they had a significant advantage. Industry rumors suggested that the 14000TEU container ship order, originally intended for CSBC, would be intercepted by Hyundai Heavy Industries, and even the final 5 ships might be 'taken' by Hyundai Heavy Industries. This made CSBC highly nervous, even prompting the involvement of Ministry of Transportation officials in an attempt to keep the order in Taiwan.
Shipbuilding industry representatives pointed out that Yang Ming Chairman Lu Fenghai, who previously served as chairman of CSBC, had previously promised to allocate the order to CSBC. Because Seaspan, the ship owner, held the dominant position in the order, Seaspan maintained a cautious attitude. Until the announcement, the industry still speculated that the 14000TEU container ship order might change. However, CSBC ultimately did not miss the opportunity to secure the order.
It is understood that Yang Ming Marine Transport leased 15 14000TEU container ships from Seaspan. Of these, an order for 5 14000TEU container ships was previously awarded to Hyundai Heavy Industries, with delivery expected in 2015.
The remaining 10 ships in Yang Ming's order led to a competition between CSBC and Hyundai Heavy Industries. Ultimately, CSBC prevented Hyundai Heavy Industries from securing the entire order. The Yang Ming board of directors approved on the 13th that 5 14000TEU container ships would be built by Hyundai Heavy Industries, with delivery between March and June 2015; the final 5 ships will be built by CSBC, with delivery expected from June 2016 onwards.
Yang Ming Chairman, Lu Fenghai, pointed out that these 5 14000TEU container ships will help CSBC transform and upgrade, enhance CSBC's international reputation, improve CSBC's competitiveness in securing international orders, and are of significant importance in supporting the continued development of Taiwan's shipbuilding industry.
Industry insiders revealed that because Hyundai Heavy Industries secured the first part of Yang Ming's 15 14000TEU container ship order, they had a significant advantage. Industry rumors suggested that the 14000TEU container ship order, originally intended for CSBC, would be intercepted by Hyundai Heavy Industries, and even the final 5 ships might be 'taken' by Hyundai Heavy Industries. This made CSBC highly nervous, even prompting the involvement of Ministry of Transportation officials in an attempt to keep the order in Taiwan.
Shipbuilding industry representatives pointed out that Yang Ming Chairman Lu Fenghai, who previously served as chairman of CSBC, had previously promised to allocate the order to CSBC. Because Seaspan, the ship owner, held the dominant position in the order, Seaspan maintained a cautious attitude. Until the announcement, the industry still speculated that the 14000TEU container ship order might change. However, CSBC ultimately did not miss the opportunity to secure the order.
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