3.2 billion yuan! Yangtze River Shipbuilding wins a large order for four dual-fuel ships from Taiping Shipbuilding

Singapore's Pacific International Lines (PIL), reborn, is increasing investment in environmentally friendly vessels to expand its fleet. Following an order for four 10,000-TEU container ships from Jiangnan Shipyard earlier this year, PIL has placed another order for four dual-fuel container ships with Yangzijiang Shipbuilding Group.

On July 5, Yangzijiang Shipbuilding Group and PIL signed a contract for four 8,000-TEU LNG-powered dual-fuel container ships, with representatives from both sides completing the contract signing via a "cloud signing" ceremony. According to PIL's announcement, the four new vessels are expected to be delivered in 2025, initially operating on LNG fuel, with an ammonia-ready design for future conversion to ammonia power once the technology matures.

Mr. Ren Letian, Chairman of Yangzijiang Shipbuilding Group, and Mr. Zhang Songsheng, Executive Chairman of PIL, signed the contract documents on behalf of their respective companies. PIL CEO Lars Christian Kastrup, Chief Trading Officer Tonnie Lim, Yangzijiang Shipbuilding Group Vice General Managers Zhang Tao and Zhou Kewei, and others witnessed the signing.

These 8,000-TEU liquefied natural gas (LNG)-powered dual-fuel container ships are based on the latest wide-body design developed by Shanghai Ship Research and Design Institute. This design offers operational flexibility, suitable for both feeder and deep-sea routes. A key feature is the use of GTT thin-film type LNG fuel tanks, a first for this ship type. Additionally, the ship is designed with an ammonia fuel tank reserve, facilitating future conversion to ammonia fuel for greener operations. The vessel also meets PHASE 3 Energy Efficiency Design Index (EEDI) requirements, uses WIN GD iCER exhaust gas treatment technology, and meets Tier III emission standards.

While PIL and Yangzijiang Shipbuilding did not disclose the price of the new ships, it is reported that each of the four new ships costs approximately US$120 million, with a total value of US$480 million (approximately RMB 3.218 billion).

This signing marks another collaboration between PIL and Yangzijiang Shipbuilding, following their 2015 project for 12 11,800-TEU container ships. Both sides have maintained close communication. With the direction of ship fuel transformation becoming clearer, both sides, based on the development of a new stage, actively leverage their respective advantages and once again join hands in a new cooperation.

Earlier this year, PIL announced plans to order 8,000-TEU container ships, contacting three shipyards: Hudong-Zhonghua Shipbuilding, Yangzijiang Shipbuilding, and Samsung Heavy Industries. It is said that PIL chose Yangzijiang Shipbuilding because they were willing to provide the GTT Mark III Flex thin-film containment system for the LNG fuel tanks.

PIL CEO Lars Kastrup said: "Our decision to order four more 8,000-TEU dual-fuel vessels is driven by two key reasons. First, it's part of our ongoing effort to optimize and renew our vessel assets to improve operational efficiency. The new vessels will complement our existing fleet and support us in strengthening our connectivity to better serve our global customers. Second, we have identified LNG as a commercially viable transitional fuel solution. The new vessels will again feature LNG dual-fuel and ammonia-ready design, which will contribute to our decarbonization goals of achieving net-zero emissions by 2050."

In March this year, PIL ordered four 14,000-TEU dual-fuel container ships from Jiangnan Shipyard, marking PIL's first new ship order in seven years. These four new ships are expected to be delivered between the second half of 2024 and the first half of 2025, becoming the largest container ships in PIL's fleet and the first capable of using LNG fuel. These four ships will also feature an ammonia fuel reserve design, preparing for future conversion to ammonia power.

       PIL, established in 1967, has grown from a bulk carrier operator to one of Asia's largest container shipping companies, once ranking among the top 10 globally. Its core business covers Asia, Africa, South America, and the Middle East.
PIL owns and operates a fleet of approximately 100 container ships and multi-purpose vessels, with container liner and bulk shipping services covering over 500 locations in 90 countries worldwide.

In recent years, PIL has faced significant financial pressure due to the prolonged downturn in the container shipping market. From 2019 to 2020, PIL massively sold off vessel assets and withdrew from the Asia-Europe and trans-Pacific routes, focusing on its advantageous Southeast Asian and African routes.

The surge in container shipping rates following the COVID-19 pandemic offered PIL a lifeline. In November 2020, PIL received investment from Singapore's sovereign wealth fund, Temasek Holdings. In March 2021, PIL completed its financial restructuring, securing US$600 million in investment. After the financial restructuring, PIL implemented various business, financial, and operational reforms, enabling the company to benefit more from the improvement in the shipping industry.