NOL signs letters of intent to build 12 new ships

NOL Group today signed letters of intent to build 12 new container vessels. The ships, all to be built in South Korea, would include: Ten 14,000TEU vessels to be constructed by Hyundai Samho Heavy Industries Co., Ltd.; and Two 9,200TEU vessels to be constructed by Daewoo Shipbuilding & Marine Engineering Co.

NOL also said it is upgrading a 2010 order placed with Daewoo for ten 8,400TEU ships. These vessels will now be upgraded to 9,20-TEUs of capacity each and will employ 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 14,000TEU ships would 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.

When delivered, the new vessels will enable NOL's shipping line, APL, to provide more efficient, reliable service to customers. The ships will include features designed to conserve fuel and reduce environmental impacts. NOL said the letters of intent are subject to contract signing with the shipbuilders. <Korea Shipping Gazette>