Hual invests R640m in new car carriers

RO-RO operator Hual has ordered two additional car carrier newbuildings from Daewoo Shipbuilding & Marine Engineering Co (DSME) in Korea at an estimated total cost of around $100m (R640m). The two 6 100-car capacity ships are due for delivery in 2006-2007. The contract includes options for further ships. The company has a 'rolling option' for one ship on which the price is negotiable, which keeps discussions open for future newbuildings with the yard, senior vice president Olav Sollie told FTW. This latest order for Hual brings the total of similar vessels for the line from the Korean yard to seven ships. The first five vessels are due for delivery in 2004 and 2005. Hual said the newbuildings were part of its fleet renewal plan. But the Norwegian owner also added that the company was experiencing a substantial demand for flexible PCTC vessels capable of carrying high and heavy cargo in addition to factory new- and second hand cars. “Hual expects that vehicle exports from Japan and Korea will remain strong in the years ahead, while China may develop into a major exporter and importer of ro-ro cargo in the future,” Sollie said. Company president Karl Terjesen said the design and size had proved optimal in many trades, giving the company more flexible vessels that can optimise cargo mix and capacity utilisation while meeting owners’ demands for frequency. The newbuildings will boost Hual’s operated fleet to over 50 ships. This includes five vessels, three from Cido Shipping of Japan, and two from Israel's Ray Shipping, which Hual is taking in on long-term charter. Hual is the ro-ro vehicle carrying company of Leif Hoegh & Co.