China Navigation Co (CNCo) has made a move back into the newbuilding arena with an order for four 2,400-teu containerships estimated to be worth in excess of $100m.

The Singapore outfit confirms the order has been placed at China's CSSC Huangpu Wenchong Shipbuilding. The ships are due for delivery in late 2019 and early 2020.

CNCo says they will replace tonnage to be phased out by its liner division, Swire Shipping, which operates services connecting Australia, New Zealand, Asia, North America and the South Pacific islands.

CNCo does not specify which vessels are likely to be phased out, but possible candidates are five 981-teu vessels that will be nearly 30 years old when the newbuildings are ready.

A spokesperson describes the newbuildings as being of a “modern and fuel-efficient design”.

Fleet renewal

The order is part of a continued “fleet renewal programme to enhance the scale and scope of our liner service offering under the Swire Shipping business division”.

It is the first newbuilding order for its liner division since 2012-2013, although CNCo has taken stakes in four 1,700-teu ships ordered in China by Hong Kong's Mandarin Shipping.

The last multipurpose (MPP) boxships ordered by CNCo belong to a series delivered between 2013 and 2015. That comprised eight 31,000-dwt/2,118-teu MPP “S Class” vessels ordered in 2010 and four 22,000-dwt/1,627-teu MPP “Chief Class” containerships ordered in 2013.

The last in that series, the 22,000-dwt/1,627-teu Papuan Chief (built 2015) was delivered in August 2015 from China’s Zhejiang Ouhua Shipbuilding.

Huangpu Wenchong has been a popular choice for containership owners since it was formed in 2015 through a merger of Huangpu Shipyard and Guangzhou Wenchong Shipyard. It is listed with 23 containerships up to 3,000 teu on order, with 20 for delivery this year, shipbroker Clarksons said in December.

Since then, Nikos Savvas-led Cosmoship Management has ordered four feeder containerships of 1,500 teu at the yard for delivery in late 2019.

Swire Shipping has been upgrading its services and will begin calling at the US west coast port of Portland, Oregon, this month.

The new call has been launched after Portland resumed the handling of containers for the first time since May 2016, when carriers withdrew due to labour strikes and productivity issues. Alphaliner reports that Swire Shipping operates a breakbulk liner service using the 31,000-dwt/2,118-teu Shengking and Siangtan (both built 2013).