China Shipping Container Lines (CSCL) has signed an agreement with Shanghai Jiangnan Changxing Shipbuilding for the construction of eight 13,500-TEUs containerships. The order is estimated for the amount of $934.4 million.

The vessels were ordered via CSCL HK, which is the CSCL subsidiary based in Hong Kong. All containerships are expected to be delivered between April and the end of December 2018.

China Shipping Container Lines orders eight 13,500-TEU container ships

Image: Chinashipping

Part of the agreement is the amount to be paid by the Hong Kong-listed carrier in 4 installments of $116.8 million each, which will be funded using cash from CSCL HK and bank financing.

“The group positively responds to the development trend for large-scale container vessels in the shipping market, adheres to low-carbon environmental protection initiatives and is committed to adjusting and optimizing the structure of its fleet,” said CSCL in a statement.

“The vessel acquisition will further help optimize the group’s fleet structure, increase shipment scale, and enhance the group’s comprehensive competitiveness. According to the internal estimation and calculation, the vessel acquisition provides certain risk-resistance and is economically and technologically feasible.”