On April 29th, 2025, Hong Kong-listed Orient Overseas (International) (0316.HK) announced that its subsidiaries have placed orders for the construction of a significant number of container vessels. The company has contracted with China COSCO Shipping Corp to build a total of 14 container ships, with the aggregate value of these newbuild orders amounting to $3.08 billion, reports Reuters.
Vessel Acquisition
Under this agreement, a subsidiary of the state-owned China COSCO Shipping Corporation will be responsible for constructing nine vessels. An affiliated entity will build the remaining ships included in the order.
It’s worth noting that China COSCO Shipping Corporation also has ownership of COSCO Shipping Holdings, a prominent Chinese container shipping company listed on the stock exchange (601919.SS).
Orient Overseas has outlined its financing strategy for this significant vessel acquisition. The company intends to utilize loans and external debt to cover 60% of the cost for each vessel. The remaining 40% of the funding will be sourced from Orient Overseas’s internal financial resources.
The delivery of these newly ordered vessels is scheduled to take place over a period of approximately one year, commencing in the third quarter of 2028 and concluding in the third quarter of 2029.
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Source: Reuters
