Twelve subsidiaries of Orient Overseas International (OOIL) have entered shipbuilding contracts for the construction of twelve container vessels at a total cost of $2.22 billion.
Signed on April 29, the agreement involves China Shipbuilding Trading and Hudong-Zhonghua, which are both units of China State Shipbuilding Corporation.
OOIL, which is a subsidiary of COSCO Shipping Holdings, will pay $185 million per vessel, equivalent to HK$17.32 billion ($2.22 billion). These payments will be made in five cash instalments based on construction progress as reported by the parent company.
The ships are scheduled to be delivered between the third quarter of 2028 and the first quarter of 2030. COSCO intends to obtain external debt financing for no more than 60 per cent of the contract price for each ship.
Internal resources will cover the remaining balance, though the company noted the full price could be funded internally if external financing is unavailable. The 13,600 TEU class units will feature liquefied natural gas dual-fuel engines.
These ships are expected to increase the average container space per vessel within the fleet to enhance economies of scale, according to COSCO.
Quotations were invited from several shipbuilders, but the group found that two other independent firms had limited slot availability.
Market prices for similar dual-fuel powered container vessels ordered since 2024 were used by the group to evaluate the fairness of the final contract terms.