SHANGHAI Jiangnan Changxing Shipbuilding Co has formally secured a US$434.5 million contract to build five 9,400 TEU containerships for China Cosco Holdings, the listed unit of China Ocean Shipping Group.
The newbuildings are scheduled for delivery between 2016 and 2017, China Cosco said in filings to the Shanghai and Hong Kong stock exchanges.
At $86.9 million apiece, the shipping line appears to be paying a three to five per cent premium above the market price for the vessels. New box ships ordered in recent months, from shipyards in both China and South Korea, cost $83-85 million each.
Said China Cosco: "The consideration was determined principally based on the prevailing market price for the construction of similar vessels" in China.
The company said it will finance the new ships with "borrowings and internal resources" and make payments "in instalments in accordance with the construction progress of the vessel," without giving further details.
The newbuildings followed a quartet of 64,000 dwt bulk carriers that China Cosco ordered in December from Jiangnan Changxing's sister yard, Huangpu Wenchong Shipbuilding Co in Guangzhou at $27 million each.
Both yards are affiliated to China State Shipbuilding Corp.
Source : HKSG.