HMM orders nine ships, plans investment

HMM orders nine ships, plans investment    Hyundai Merchant Marine has placed orders for nine new containerships and believes the time is right for investment as world container volumes rise.
   HMM has ordered four 8,600-TEU and five 4,700-TEU containerships from Hyundai Heavy Industries and Hyundai Samho Heavy Industries respectively for a combined cost of about $910 million.
   “HMM is confident that the investment is both timely and profitable as the global shipping industry is beginning to focus on larger carriers of more than 7,000 TEUs to benefit from economies of scale,” HMM said in a statement. “The time is right for additional investment, which is essential if HMM is to become a market leader — now that it has recovered from management difficulties. Also, the world’s container volumes are increasing steadily — centering around BRICs countries (Brazil, Russia, India and China) — and investment conditions are generally favorable.”
   Each of the four 8,600-TEU ships will have a length of 339 meters (1,112 feet) and a 45.6 meters (150 feet) beam, capable of a speed of 27 knots. HMM said the ships will actually be able to carry a maximum of 9,000 TEUs. The 4,700-TEU ships will be 294.1 meters (965 feet) long, 32.2 meters (106 feet) broad and capable of a speed of 25 knots.
   The ships are scheduled for delivery between January 2008 and September 2008. HMM said it will operate the larger ships in the Asia/Europe trade, while the smaller vessels will be deployed on Middle East services.
   Besides the new order, HMM’s containership orderbook comprises eight 6,800-TEU vessels and three 4,700-TEU ships, all under construction.