South Korean shipbuilder Hyundai Heavy Industries (HHI) has received a $1.4bn order from United Arab Shipping Company (UASC) for the construction of ten ultra-large container ships.
Out of the ten vessels, five will be of 18,000 twenty-foot equivalent units (teu) each, while the remaining will be 14,000teu vessels.
The 18,000teu vessels are scheduled to be delivered from late 2014, while the 14,000teu container ships will start delivery from the first half of 2015.
UASC also has options to buy one additional 18,000teu vessel and six 14,000teu ships, which could bring the total contract value to over $2bn.
The new vessels will be powered by an electronically-controlled main engine that will help in increasing fuel efficiency as well as reduce noise, vibrations and carbon emissions by automatically controlling fuel consumption to suit sailing speed and sea conditions.
According to UASC, the vessels will be amongst the most technologically advanced and environmentally-friendly container vessels ever built.
Funding for the order is coming from Korean export credit and debt financing by a consortium of lenders, led by Deutsche Bank and Qatar National Bank.
So far in 2013, HHI has achieved orders worth a total of $19.6bn in its shipbuilding, offshore and engineering, and industrial plant and engineering divisions, which is 82% of the company’s annual order aim of $23.8bn.
In 1976, the governments of Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates established UASC to improve trade links with the rest of the world.
The order follows UASC’s $1.5bn order for nine 13,100teu container ships equipped with waste heat recovery systems (WHRS), placed in 2008.
Image: HHI expects to start delivery of the 18,000teu and 14,000teu vessels to UASC from late 2014 and the first half of 2015 respectively. Photo: courtesy of Hyundai Heavy Industries.