HD KSOE signs $1.45bn contract with HMM for eight container ships

009540.KS +2.86% 329180.KS +2.37%

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has formalised a shipbuilding contract worth $1.456bn with global shipping company HMM.

The contract covers the construction of eight container vessels, each with a capacity of 13,400 twenty-foot equivalent unit (TEU).

The vessels will measure 337m in length, 51m in width, and 27.9m in height. Out of the eight ships, two are scheduled for construction at HD Hyundai Heavy Industries while six will be built at HD Hyundai Samho.

The container ships will be fitted with liquefied natural gas (LNG) dual-fuel engines and a fuel tank that is about 50% larger than standard versions. This feature aims to improve operational efficiency.

Deliveries are expected to begin in sequence and continue until the first half of 2029.

The contract brings HD KSOE’s total orders for container ships this year to 69 vessels with a combined capacity of 720,000 TEU. This figure represents the highest volume among shipbuilders based in South Korea.

HD Hyundai said it has implemented the HiNAS Control system on its newbuilds since 2023 onward.

The system was developed through a partnership between navigation technology company Avikus and HD Hyundai Heavy Industries.

HiNAS Control is an autonomous navigation system with functions for vessel manoeuvring, collision detection, and collision avoidance.

The system operates with partial autonomy, and certified crew onboard remain responsible for its use and for the vessel’s operations, noted Avikus.

It supplies recommended routes and speeds based on weather data and vessel movement characteristics. It also offers automatic tracking of routes and speed, as well as guidance and control for collision avoidance.

According to HD Hyundai, data collected from actual vessel operations indicates that HiNAS Control’s automation features and revolutions per minute (RPM) management have led to a reduction in carbon emissions by 15% and produced a similar percentage increase in fuel efficiency.

An HD Hyundai representative said: "We are further solidifying our position in the global market based on advanced technological capabilities and customer trust.

"Going forward, we will continue to lead the decarbonisation of the shipbuilding and shipping industries through technological competitiveness focused on eco-friendly and high-efficiency vessels."

The contract follows HMM’s announcement last month on new vessel orders totalling Won4tn. HMM said the order consists of twelve 13,000 TEU container ships and two very large crude carriers.

The company also noted that HD Hyundai Heavy and Hanwha Ocean will construct the container vessels. Last week, HD Hyundai Heavy Industries marked 5,000 ships delivery milestone.

"HD KSOE signs $1.45bn contract with HMM for eight container ships" was originally created and published by Ship Technology, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.