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Qingdao Beihai wins Taiwanese order

Author: Posttime:2010-11-01 08:10:06
Taiwan's First Steamship has opted to order new ships in China for the first time ever, saying Japanese yards are too costly.

The owner confirms it has ordered an 82,000-dwt kamsarmax bulker at Qingdao Beihai Shipbuilding Heavy Industry under the umbrella of China Shipbuilding Industry Corp (CSIC), and has until the end of the year to exercise an option for a second.

It is the first vessel the company has booked in more than a decade. First Steamship previously built its vessels in Japan.

"We turned to China because Japanese ships are too expensive now," said an executive at First Steamship.

"On top of that, Japanese shipyards are not able to offer us early delivery dates."

First Steamship does not disclose the cost of the newbuildings but says the Chinese price is at least 30% less than what the Japanese are seeking.

Newbuilding players believe First Steamship is paying around $34.5m each for the kamsarmaxes.

The owner says it chose Qingdao Beihai as it has a long relationship with the yard.

"We are familiar with Qingdao Beihai as it has been repairing our vessels for some time," said the executive.

A state-owned shipbuilder Qingdao Beihai is slated to deliver First Steamship's firm newbuilding in September 2012 and the optional vessel in the first quarter of 2013.

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