Ningbo Ocean Shipping Co., Ltd. has announced plans to expand its fleet by establishing two new subsidiaries in Singapore. These entities will be dedicated to new container vessel construction projects, with a total investment of nearly RMB 2.9 billion (approximately $406.6 million).
New Subsidiaries and Vessel Projects
The company’s board of directors approved the formation of two new wholly-owned subsidiaries under its existing Singaporean arm, Ningbo Ocean Shipping (Singapore) Co., Ltd.
- Ningbo Ocean Shipping (Singapore) Longitude Pte. Ltd. will manage the construction and operation of four 2,700 TEU container vessels, with a total investment of about RMB 1.194 billion.
- Ningbo Ocean Shipping (Singapore) Latitude Pte. Ltd. will be responsible for a separate project to build and operate four 4,300 TEU container vessels, with an investment of approximately RMB 1.7 billion.
The investment funds will cover the costs of vessel construction and the initial operational expenses of the new subsidiaries. Both entities will have a registered capital of SGD 5 million and will focus on shipping and ship management services.
Strategic Rationale and Risks
Ningbo Ocean Shipping stated that this expansion is aligned with its strategic plan to optimize and strengthen its core business and enhance its global competitiveness. By leveraging Singapore’s position as an international shipping hub, the company aims to broaden its market reach and services. The projects are subject to approvals from Chinese authorities and registration in Singapore. The company also acknowledged potential operational and management risks associated with overseas investments due to political, legal, and economic differences.
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Source: Port News
