Hong Kong-listed Orient Overseas (International) said on Tuesday that its units have ordered the construction of 14 container vessels from China COSCO Shipping Corporation totalling $3.08 billion in value.
The container transport and logistics firms said that the vessels, equipped with methanol dual-fuel engines, will boost competitiveness and lower costs in both traditional and emerging markets.
Under the deal, a unit of state-owned China COSCO Shipping Corporation will construct nine vessels, while an associate will build the remaining five.
China COSCO Shipping Corporation also owns the Chinese container shipping company COSCO Shipping Holdings.
Orient Overseas plans to tap into loans and external debt to finance 60 per cent of the cost of each vessel, while the rest will be funded through internal resources, it said.
The vessels will be delivered between the third quarter of 2028 and the third quarter of 2029.
(Reporting by John Biju in Bengaluru; Editing by Vijay Kishore)