Israel Corporation (TASE: ILCO) subsidiary Zim Integrated Shipping Services Ltd. has received the first two of twelve large container ships ordered. The Zim Los Angeles is an 8,400-TEU (twenty-foot equivalent unit) container ship. In two week, the company will take delivery of the Zim Djibouti, a 10,000-TEU container ship, which will become the largest container ship in the company's fleet.
Both ships were built by South Korea's Hyundai Shipyards Ltd. and Samsung Heavy Industries Co. Ltd. (KSX:10140). Zim ordered the ships in 2006 and 2007 as part of the first round of its procurement plan. Zim is currently in talks with the shipyards and banks to postpone or cancel the orders, which total $1.4 billion. The ships are due to be delivered in 2010-11.
Zim will operate the two new ships on Far Eastern-North American lines run in cooperation with the Grand Alliance of shippers. Zim said that the new ships will enable it to expand its ports of call in Asia and North America.
Israel Corp. and Zim chairman Idan Ofer expressed cautious optimism. "The world's economy is changing, along with the shipping industry. When the crisis ends, we'll be ready with a fleet of ships suitable to meet the demands of the global market."
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2009
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