Thu, Apr 15, 2010 - Page 12 News List

CSBC to build two bulk ships for CMT

By Kevin Chen  /  STAFF REPORTER

CSBC Corp, Taiwan (CSBC, 台灣國際造船) yesterday signed a “letter of agreement” with Chinese Maritime Transport Ltd (CMT, 中國航運) to build two 203,000-tonne capesize bulk ships, a company official said.

The two companies are expected to sign a formal contract on the US$129 million deal by the end of next month, CSBC president Paul Tang (譚泰平) said by telephone.

“This is the first order we have received so far this year,” Tang said.

The Kaohsiung-based firm is expected to deliver the two ships to CMT “no later than the first quarter or the second quarter of 2012,” based on the agreement, he said.

The global recession forced many shipping companies to delay their orders last year and only about one-third of shipbuilders’ orders worldwide were executed last year.

“While global trade is rebounding from recession levels, the outlook for the shipbuilding industry remains bleak this year,” Tang said.

Tang said he sees no clear sign of a strong recovery for the world’s shipyards over the next two to three years.

CSBC’s first-quarter revenue dropped 39.76 percent year-on-year to NT$5.91 billion (US$187.9 million), the company said last week. Last year’s revenue dropped 12.5 percent to NT$31.19 billion from the previous year.

CMT said in a separate filing that the vessels would help it expand its fleet and retire aging ships.

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