T.S. Lines Limited announced it has entered into amended shipbuilding contracts with Huangpu Wenchong Shipbuilding Company Limited and China Shipbuilding Trading Co., Ltd., for the construction of two new container vessels.
The aggregate consideration amounts to US$125,560,000 (approximately HK$979,368,000), with each vessel priced at US$62,780,000 (approximately HK$489,864,000).
The amended agreements replace the original 2024 shipbuilding contracts, which were signed on September 20, 2024, for two vessels at an aggregate price of US$121,200,000 (approximately HK$945,360,000).
The changes include modifying the vessel specifications from 4,300 TEU to 5,300 TEU.
The vessels are scheduled for delivery in February 2028 and April 2028.
Payment terms include six installments, beginning with US$6,060,000 paid within five banking days after receipt of the refund guarantee and concluding with a final payment of US$31,730,000, subject to adjustments.
As of the announcement date, the first two installments have been paid. The sellers’ bank will provide an irrevocable refund guarantee, while T.S. Lines will issue a new payment guarantee within seven business days after execution.
The consideration was determined after arm’s length negotiations, taking into account market comparisons, quotations from other shipbuilders, and the track record of the sellers.
Funding for the installments already made came from internal resources, and the company expects to use a combination of internal funds and external financing for the remaining payments.
T.S. Lines Limited is a company incorporated in Hong Kong with limited liability. The company operates independently and through arrangements with other carriers.
Huangpu Wenchong Shipbuilding Company Limited is a company incorporated in the People’s Republic of China with limited liability. It is an indirect non-wholly owned subsidiary of China State Shipbuilding Corporation Limited.