Hengli Heavy Industries and China Merchants Jinling Shipyard will adjust the specifications of the eight medium-sized container ships they are building for Shanghai Zhonggu Logistics Co., Ltd. (hereinafter referred to as “Zhonggu Logistics” or the “Company”), increasing the capacity from 6,000 TEU to 6,300 TEU.
According to an announcement released by Zhonggu Logistics, the company held the 18th meeting of its fourth Board of Directors on June 24. During the meeting, the Board reviewed and approved the feasibility analysis report regarding the use of proceeds from the issuance of convertible corporate bonds to unspecified investors, while also adjusting the report: the specifications for eight 6,000 TEU container ships were revised to 6,300 TEU.
Earlier, on June 3, Zhonggu Logistics released a “Feasibility Analysis Report on the Use of Proceeds from the Issuance of Convertible Corporate Bonds to Unspecified Investors.” The report stated that the company plans to raise up to RMB 3 billion (approximately $441 million) through this issuance; after deducting issuance expenses, the net proceeds will be allocated to a “Container Vessel Acquisition Project.” This project involves a total investment of approximately RMB 6.859 billion (approximately $1.009 billion) and entails the addition of ten 1,800 TEU container vessels and eight 6,000 TEU container vessels, with RMB 3 billion of the raised funds earmarked for the initiative.
This adjustment primarily involves eight medium-sized container ships, with their capacity increased from 6,000 TEU to 6,300 TEU. In response, Zhonggu Logistics stated that this revision was due to the finalization of the ship designs, and that the container ship types and the amount of raised funds to be invested remain unchanged.
Referring to previous reports, construction contracts have been signed for all 18 container ships mentioned above, which will be built by shipyards affiliated with by Hengli Heavy Industry and the shipyards under China Merchants Shipbuilding, respectively.
In January, Zhonggu Logistics signed an order with Hengli Heavy Industries for 4+2 6,000-TEU container ships, with a total construction cost not exceeding RMB 3.48 billion (excluding tax), scheduled for delivery in 2028; in February, the company placed an order with China Merchants Jinling Shipyard for 2 6,000-TEU container ships, with a total construction cost not exceeding RMB 1.16 billion (excluding tax); In April, the company placed an order with China Merchants Shipbuilding Qingshan Shipyard for 10 1,800-TEU container ships, with a total cost not exceeding RMB 2.7 billion, scheduled for delivery between 2028 and 2029.
In addition, Zhonggu Logistics announced that it plans to sell three container ships—the “Zhonggu 20”, the “Zhonggu 21”, and the “Zhonggu Chengdu”—for a total estimated sale price of no less than RMB 570 million yuan (approximately $84 million). Zhonggu Logistics stated that this move aims to further optimize the vessel types and age structure of its fleets and increase the proportion of energy-efficient and environmentally friendly vessels.
Shanghai Zhonggu Logistics Co., Ltd.,was founded in 2003 and is one of China’s earliest companies specializing in domestic container shipping. It has since evolved into a comprehensive, modern enterprise integrating liner shipping, integrated logistics, vessel management, and real estate investment, and currently operates more than 100 container ships.