June 08, 2010
Taipei, June 4, 2010 (CENS)--Driven by promising prospects of the shipping industry, Taiwan`s shippers are kicking off shipbuilding plans. Besides Evergreen Marine`s plan to order 100 ships, Sincere Navigation Corp. and Chinese Maritime Transport Ltd. are investing in new vessels, with U-Ming Transport also considering following suit.
An industry insider predicts domestic shippers, excluding Evergreen, will see capital spending total US$3.1 billion in the next three to five years.
In April, Evergreen announced a plan to build 100 ships, including 32 8,000-TEU (twenty-foot-equivalent unit) vessels, at a cost exceeding US$5 billion, making such project the largest of its kind worldwide and with the new ships to be gradually delivered beginning 2013. Many world-class shipbuilders as STX Offshore & Shipbuilding of South Korea, CSBC Corp. of Taiwan, and NACKS of China are vying for the orders.
Other shippers including Wisdom Marine Lines S.A., the state-run CPC Corporation, China Steel Express Corp. under the CSC Group, and Formosa Plastics Marine Corp., will expand fleets by ordering 50 bulk-cargo ships and oil tankers.
A domestic analyst said it`s the right time for Taiwan`s shippers to expand fleets. For instance, 500 bulk-cargo ships will begin service between 2010 and 2011. It is also the right time for shippers to retool fleet as costs for shipbuilding have bottomed out, with quotes for steel having stabilized.
(by Ben Shen)
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