THE Danaos Corporation has ordered five 6,500-TEU vessels for US$500 million from South Korean shipbuilder Hanjin Heavy Industries & Construction Co. Ltd.

The containerships are expected to be delivered to Danaos in late 2009 and throughout June 2010. "This acquisition is one further step in our development," said Danaos CEO John Coustas.



"We have a number of excellent Hanjin Heavy Industries built vessels in our fleet, and it was now time to further our relationship with a solid order of five post-panamax containerships. The vessels will be powered by Korean built electronic engines providing improved efficiency, lower emissions and with a design speed of 25.6 knots," Dr Coustas said.



Danaos has also arranged for three of the vessels on order to be chartered for 15 years each with the Yang Ming Group at a rate of $34,325 per day. This will increase Danaos' contracted revenue by $550 million to $3.5 billion.



This new order also raises Danaos' total order book to 23 containerships with a capacity of 130,524 TEU, equivalent to 94 per cent of its current fleet, a company statement said.



The capital required to finance the latest vessel purchase will be raised through existing credit facilities and Danaos' funds according to work in progress under the specific terms of the shipbuilding contracts.