Former NOL CEO Lua Dies

Lua Cheng Eng, who built the regional Neptune Orient Lines business into a world shipping power through the landmark 1997 merger with APL, died in Singapore on Nov. 9.

Lua, who was 67, had suffered serious injuries in a fall last month in Beijing and had been flown to a Singapore hospital for treatment. He had been in critical condition since the fall.

As CEO for 20 years from 1979 through 1999 and then chairman until 2002, Lua’s decisions helped the NOL Group grow into the world’s fifth largest shipping line this year from 20th rank when it acquired the 150-year-old APL, the former American President Lines, for $825 million.

“He built up NOL from a small shipping line to a major carrier with 120 ships,” the NOL Group said in a statement. “He presided over the most important transaction in Singapore’s maritime history through the merger of NOL and APL in 1997 and guided the integration of two great names in the maritime sector.”

At the time, the acquisition was widely seen as an industry-changing event, but Lua said it was a necessary adaptation to rapid globalization. “I don't know why they called it 'the merger that shook the industry,' '' he said at the time. “Conditions in the container shipping industry that have led to the most recent round of consolidations will lead to more of them.'' He said ''fast-paced globalization of the world economy'' was forcing carriers to expand into new trade lanes, and combining the operations of major carriers was the most efficient way to do that.

NOL’s merger with APL occurred in the same year that P&O Containers of the UK merged with Nedlloyd of the Netherlands. At that time, CP Ships was also gathering a number of smaller U.S. carriers under its umbrella.

After orchestrating NOL’s merger with APL, Lua also presided over the slimming down of some of the line’s operations, selling APL’s North American stack train business to Pacer International for $315 million in 1999. After Lua retired, NOL also sold American Eagle Tankers in 2003 for $445 million to Malaysia International Shipping Co.

Lua, who retired as NOL board chairman in May 2002, served as CEO of the NOL Group for 20 years from 1979 through 1999 before becoming board chairman in June 1999, including chairmanship of NOL Group subsidiaries, APL Ltd., APL Co., APL (Bermuda) and American Eagle Tankers.