On August 19, T.S. Lines Ltd. (hereinafter referred to as “T.S. Lines”) issued an announcement on “Discloseable Transaction – Ship Construction”.
The announcement disclosed that T.S. Lines entered into an amended shipbuilding contract with Huangpu Wenchong Shipbuilding Co., Ltd., a subsidiary of China State Shipbuilding Corporation (CSSC), and China Shipbuilding Trading Co., Ltd. (CSTC), as the sellers. Revise the specifications of the vessels ordered under the 2024 shipbuilding contract to build two new vessels at a total cost of approximately US$126 million, with each vessel costing approximately US$62.78 million.
According to the announcement, the series of container vessels is expected to be delivered between February and April 2028.
Based on the news from Huangpu Wenchong Shipbuilding on September 20, 2024, the new vessel specifications agreed upon at the time were 4,300 TEU, with a single vessel cost of approximately US$60 million. After this upgrade, the vessel specifications have increased to 5,300 TEU, and the cost of each vessel will increase by approximately US$2.78 million.
T.S. Lines stated that the construction of these revised 5,300 TEU vessels is consistent with the Group’s long-term development strategy and will bring significant benefits to the Group and its shareholders as a whole. The two vessels will increase the size and overall capacity of T.S. Lines’ owned fleet, enabling the Group to better capitalize on market opportunities and respond to growing demand in the container shipping industry, particularly in the Asia-Pacific region and other key markets. The new vessels will further strengthen the Group’s ability to provide reliable and frequent services to its customers and enhance its market position.
Furthermore, T.S. Lines’ strategy includes maintaining a balanced portfolio of owned and chartered vessels, with a focus on increasing the proportion of owned vessels to achieve long-term cost advantages. Owned vessels are not subject to fluctuating charter rates or fixed charter terms, which generally reduces unit operating costs. New vessels with modern designs and specifications are expected to be more fuel-efficient and environmentally friendly, reducing operating costs and helping to comply with increasingly stringent environmental regulations.
It’s worth noting that on August 7, Huangpu Wenchong Shipbuilding, CSTC, and T.S. Lines officially sgined a contract for the construction of four 5,300 TEU container vessels. These vessels are expected to be delivered between June and December 2028, with each vessel costing approximately US$61.3 million. Based on this, the total value of the four new vessels is US$245.2 million (approximately RMB 1.76 billion).
Huangpu Wenchong Shipbuilding’s cooperation with T.S. Lines began in 2019. Over the past five years, the two parties have collaborated on projects ranging from 1,900 TEU feeder container vessels to the current 5,300 TEU medium-sized container vessels. Including the above orders, the cumulative number of orders has reached 16.
As one of the most dynamic shipping companies in the Asia-Pacific region, T.S. Lines was founded in 2001 and ranks as the 20th largest container shipping company in the world in terms of capacity, operating a fleet of approximately 40 vessels.