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China Shipping to Expand Fleet by 39 Ships as Demand Booms

Strategic Insights

— 2 min read

China Shipping (Group) Ltd, the country's second-largest sea transport operator, is set to purchase 39 ships this year to meet surging demand. The company aims to expand its fleet to become one of the world's largest three fleets by 2010. The new additions will increase China Shipping's total capacity by 17%, adding 2.2 million tons to its existing fleet of 417 ships, which includes 90 oil tankers and 120 container vessels. The company is expected to finance the acquisitions through bank loans and existing funds, driven by rapidly increasing demand for its services.

Key Takeaways:

  • China Shipping will acquire 39 ships this year at a cost of 8 billion yuan (US$966 million) to meet surging demand.
  • The new additions will increase the company's total capacity by 17%, adding 2.2 million tons to its existing fleet.
  • China Shipping's fleet currently comprises 417 ships, including 90 oil tankers and 120 container vessels.
  • The company has a deadweight of 13 million tons, reached in 2004.
  • China Shipping delivered more than 100 million tons of coal last year, accounting for 5% of China's total coal output.
  • The company posted a pre-tax profit of 8.5 billion yuan (US$1 billion) in 2004, up 340% from 2003.
  • China Shipping plans to increase its container capacity from 280,000 TEUs to 650,000 TEUs by 2010, ranking it third in the world.
  • Li Kelin, China Shipping's president, stated that the company's shipping prices should rise by 3-4% this year due to rising oil prices.

Statistics:

  • 39: Number of ships China Shipping will acquire this year.
  • 17%: Increase in China Shipping's total capacity from the new additions.
  • 2.2 million tons: Additional capacity added to China Shipping's fleet.
  • 417: Number of ships in China Shipping's existing fleet.
  • 90: Number of oil tankers in China Shipping's fleet.
  • 120: Number of container vessels in China Shipping's fleet.
  • 13 million tons: China Shipping's deadweight in 2004.
  • 100 million tons: Coal delivered by China Shipping last year, accounting for 5% of China's total coal output.
  • 8.5 billion yuan (US$1 billion): China Shipping's pre-tax profit in 2004.
  • 340%: Increase in China Shipping's pre-tax profit from 2003 to 2004.
  • 280,000 TEUs: China Shipping's current container capacity.
  • 650,000 TEUs: China Shipping's planned container capacity by 2010.

Sources:

  • Reuters
  • China Shipping (Group) Ltd
  • Xinhua News Agency (XIC)

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