Taiwan’s TS Lines is expanding its containership fleet with orders for up to seven more feeder newbuildings at yards in China.
The intra-Asia liner operator has booked four firm 1,100-teu newbuildings at China's state-owned Fujian Mawei Shipbuilding. The deal includes options for two more ships.
The Hong Kong-based company already has nine boxships under construction at shipyards in China.
Mawei is said to be slated to deliver the firm vessels in 2023 with the optional ships lined up for delivery in 2024. Officials at TS Lines were not available for comment.
TS Lines is said to be paying between $21m and $23m for the newbuildings, which are based on a design from the Shanghai Ship Research and Design Institute. The 148-metre long and 23.25-metre wide feeder vessels will be able to load 1,140 standard 20-foot containers and will be fitted with 145 reefer sockets.
Shipbuilding observers said TS Lines’ contract has provided a timely boost for Mawei’s orderbook.
The yard was said to be facing a shortage of newbuilding work.
Mawei is currently building chemical tankers that were ordered by Ocean Tankers’ founder Lim Oon Kim. But the Singapore-based tycoon is said to have terminated those contracts and the shipyard is now looking to sell the vessels.
Mawei last secured containership newbuilding business five years ago, when domestic shipowner Quangzhou Ansheng Shipping signed up for four 688-teu boxships.
TS Lines has also returned to China's Huangpu Wenchong for a single 1,900-teu newbuilding for May 2023 delivery, taking its tally of orders at the China State Shipbuilding Corp-controlled shipyard to five. The earlier four were placed last year for $23m per ship.
The price of TS Line’s lone newbuilding at Huangpu Wenchong was not disclosed, but shipbuilding players said the current Bangkokmax newbuilding price is at least $30m.
Huangpu Wenchong is already building one 2,700-teu newbuilding for TS Lines. The containership, to be named TS Hochiminh, is due for delivery next month. It will be deployed between China and Australia.
Last month, TS Lines signed up for four 7,000-teu newbuildings at Shanghai Waigaoqiao Shipbuilding (SWS) at a total cost of more than $300m. They will be the largest vessels in its fleet.
TS Lines is scheduled to take delivery of the SWS quartet between 2023 and 2024. It plans to deploy the ships on the India-Pakistan trade.
TS Lines currently operates 53 containerships, of which 24 are owned. It was reported to have revived plans to relaunch an initial public offering in Hong Kong in the second half of this year. Funds raised could be used to finance the expansion of its fleet.
