Upturn in Demand for Upgraded Post PanaMax Car Carriers

The new Panama Canal, to be completed in 2014, has shown an increase in orders for upgraded car carriers. So far in 2013, TTS has received orders for equipment for 12 PostPanaMax car carriers.

The Panama Canal opened in 1914 has since then limited the width of ships passing the canal to be approx. 32 meters. In October 2006 a decision was taken to modernise the canal and its locks to accept larger ships and allowing ships to be up to 49 meters wide.

New possibilities in ship design

This upgraded canal restrictions have given naval architects new possibilities for elaborating ships’ dimensions, designing more efficient ships and giving new proportions to car carriers. The length of the vessels has remained around 200 m, but the vessels’ width has increased to about 35.5-36.5 m, giving a larger flexibility to choose one or two pillar arrangement and engine room arrangement, all adding more flexibility and cater for greater variety and capacity of cargo. The new main dimension ratio has also given potential for significantly increased hull efficiency with improved fuel economy.

Order increase for PostPanaMax vessels

Already during 2012, TTS Marine AB in Gothenburg was awarded two contracts for delivery of cargo access equipment to in total five PostPanaMax vessels. In August of the same year, TTS received a contract from Hyundai Heavy Industries for delivery of CAE to three car carriers, S667- 669, 7,300 units PCTC to be built at the Samho yard for Glovis, the first PostPanaMax PCTC ordered.

In October 2012 TTS received another contract for delivery of CAE to a further PostPanaMax car carrier project, this time a contract for delivery of equipment to two car carriers to be built at HHI’s Gunsan yard, H2610-2611.

In 2013 the row of PostPanaMax car carrier projects has continued. So far this year TTS Marine AB has been awarded contracts for delivery of equipment to another 12 PostPanaMax car carriers. The year started with a contract for delivery of equipment to H2629, a repeat of previous H2610-2611, at the same yard for the same owner.

Korea and China

The previous PostPanaMax car carrier projects have mainly been contracted to yards in South Korea. This concentration was broken in early February when 3+3 car carriers were contracted by Hoegh Autoliners at Xiamen Shipyard in China. The vessels, with hull numbers 462A-C are 8,500 units PostPanaMax car carriers and TTS will to each vessel deliver design and components for the 3,300 tons of ro-ro equipment.

Later this year the Korean domination has continued. In second quarter, Glovis ordered further two 7,300 units PCTC, S717-718, similar to previously ordered S667 series built at the same yard for the same owner. TTS was contracted to supply the ro-ro equipment also for these vessels. The equipment consists mainly of external and internal ramps with a total weight of about 670 tonnes for each vessel. The contract includes delivery of design and components and delivery will be completed by the end of this year. The contract also includes delivery to two further options.

The row of PostPanaMax car carriers continued by a contract awarded to TTS in early May by Hyundai Mipo Dockyard for complete delivery of ro-ro equipment to four 7,500 units car carriers, H8145-8148, to be built for Ray Car Carriers. The TTS delivery includes design and complete delivery of ro-ro equipment and design and vital parts for the liftable car decks with a total weight of about 2,230 tons per shipset. The deliveries of equipment will be completed during 2014.

In addition to above contracts there are still several projects in the market for further PostPanaMax car carriers to be contracted later this year, while the market outlook for this type of vessels looks rather bright at the moment.

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Press release, June 20, 2013