Zhonggu Logistics has announced that it has ordered up to eight 4,600TEU ships, from China Merchants Jinling Shipyard (Nanjing) Co., Ltd, completing its intention to book 18 such vessels.
[s2If is_user_logged_in()]China’s largest domestic liner operator made the announcement in a Shanghai Stock Exchange filing on 20 February 2021, stating that the order comprises six firm orders and options for two more ships.
Earlier this month, Zhonggu commissioned 10 vessels at Jiangsu New Yangzijiang Shipbuilding. The newbuilding prices were not disclosed, but Intermodal Shipbrokers estimates that each vessel has a market value of US$35 million. All the ships will be delivered from Q4 2022 to H1 2024.
Zhonggu’s management said that the investment is in line with the State Council’s issuance of the Three-Year Action Plan on Transportation in October 2018. The plan called for improving the supply-side of transportation and involved a comprehensive acceleration of the development of shipping and multimodal transportation.
In May 2020, Beijing proposed economic development around domestic and international market cycles. The government visualised that such a development pattern would stimulate domestic consumption, driving domestic trade and transportation demand.
Zhonggu said, “In this context, the newly built 4,600TEU container ships can improve operating efficiencies, reduce operating costs, meet the development requirements of the dual-cycle strategy, and reflect the company’s adherence to a green development path.”
Martina Li
Asia Correspondent
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