The board of directors of Compañía Sud Americana de Vapores has approved an investment plan of $570 million to acquire seven new container ships and to prepay $258 million of its debt.
The vessels, each with a capacity of 9,300 20-foot-equivalent units, will be built by Samsung Heavy Industries in South Korea and will be delivered by the end of 2014. The investment will increase CSAV’s own fleet from 37 percent to 55 percent.
The Chilean shipping company is planning to finance the newbuilding order with 40 percent equity, about $230 million, and 60 percent financial debt, about $340 million. CSAV also has the option to order up to seven additional vessels on similar conditions.
“The newbuilding investment plan is aligned with the strategic direction of joint operations, search of economies of scale, right proportion of own fleet and cost efficiency,” said Oscar Hasbύn, CEO of CSAV, in a written statement.