China's CSSC Offshore and Marine Engineering (COMEC) announced on February 4 that its subsidiary has secured a major shipbuilding order for the construction of 16 feeder container vessels. The contract, signed between CSSC Huangpu Wenchong Shipbuilding and Singapore-based Evergreen Marine Asia, is valued between $736 million and $896 million.
The agreement covers the construction of 16 containerships, each with a capacity of 3,000 TEU. COMEC stated the series of vessels is scheduled for delivery from 2028 to 2030 or earlier.
Payments for the vessels will be made in US dollars and distributed in instalments based on the construction progress. COMEC noted the performance of the contract is, "expected to have a positive impact on the company’s cash flow and subsequent operating results".
COMEC's board of directors indicated that all parties to the contract possess good credit standing and a strong capability to perform their obligations. However, the company cautioned that uncertainties may arise due to changes in laws, industry policies, and market conditions during the performance period.