Hapag-lloyd group new ship generation

With a capacity for 7,500 containers, the "Hamburg Express", named today in Hamburg by Lydia Schrempp, wife of DaimlerChrysler CEO Jurgen Schrempp, is one of the largest containerships in the world.

She is the new flagship of the Hapag-Lloyd fleet. The newbuilding was named the "Hamburg Express" today at Hamburg's Burchardkai terminal by Lydia Schrempp, wife of Jurgen Schrempp, the head of DaimlerChrysler, which has been one of Hapag-Lloyd's main customers for many years. "The bottle smashed at the first go, which is a good omen for superstitious seafarers like us," jested Bernd Wrede, chairman of the executive board of Hapag-Lloyd AG. The naming ceremony was attended by 150 invited guests from business and politics, including Hamburg's mayor, Ole von Beust, and DaimlerChrysler's Jurgen Schrempp.

The "Hamburg Express" is a ship of superlatives: she is 320 metres long and 43 metres wide and with a capacity of 100,000t can carry 7,500 standard containers (TEU), with a maximum of 17 containers stacked next to one another on deck and 16 layers on top of one another, including seven on deck.

The main engine, which is the size of a house, has an output of 68,640 kW or over 93,000 hp, providing a speed of over 25 knots, or over 50 km/h. The propeller with its diameter of 9.1 metres and weight of 100 tonnes is currently the world's largest driving a containership.

The "Hamburg Express" was built by Hyundai Heavy Industries in Ulsan, South Korea. Construction began on February 14th this year when the lasers began to cut the first steel plates - up to 78 millimetres thick.

Computer-controlled systems were used to ensure the precision engineering of the sections making up the vessel. Already incorporating all installations and supply systems, these modules only needed to be welded together in the construction dock. A total of 300 sections, some weighing up to 800 tonnes, were fitted.

"Hyundai handed over the newbuilding to us right on schedule on October 24th 2001 after a construction time of only eight months," stated a gratified Gunther Casjens, CEO of Hapag-Lloyd Container Line. The containership called at Pusan, Shanghai, Xiamen, Yantian, Hongkong, Singapore, Port Said and Southampton before arriving punctually for the naming ceremony in Hamburg.

Casjens commented that 20 years ago Hapag-Lloyd commissioned what was then the "largest ship in the world": the "Frankfurt Express", which is still in service. She could carry 3,430 containers - at that time, an all but unimaginable capacity. The progress made in shipbuilding is shown even more clearly by fuel consumption: 55 kg per container and day on the "Frankfurt Express", compared with only 23 on the "Hamburg Express" at a speed of 23 knots.

Bernd Wrede pointed out that the downturn in the second half of the year had also made itself apparent in container shipping. "It is gratifying for Hapag-Lloyd that we were again not so badly affected by the general trend. In 2001 we will also grow faster than the market as a whole," Bernd Wrede remarked, adding that container liner shipping remains a long-term growth market, expanding on average by six percent in the past 20 years. He expects growth for 2001 and 2002 to be well down on the long-term average.

"However, this will not affect our long-term growth philosophy, which also involves a relevant capacity and investment strategy. Our four newbuildings, the first of which was named today, represent the basis for our planned expansion," stated Bernd Wrede.

Containerships, Wrede explained, stay at least 20 to 25 years in service, so the decision to order a ship cannot be based on short-term market fluctuations. It is already evident today that Hapag-Lloyd will need additional capacity from 2004. The group has thus chartered on a long-term basis another four 6,750 vessels for delivery at the end of 2003/early 2004. Hapag-Lloyd will then be transporting well over two million TEU, compared with 1.7 million containers as in 2001.

Bernd Wrede concluded: "In the 2001 financial year, Hapag-Lloyd Group expects to achieve sales of close on 4 billion. The operating result after allowing for depreciation and interest will be in the region of that for the previous year, which at 250 million was the highest in the company's 154-year history."