HHI officials hold a ceremony to begin building the first of five 19,000 TEU

 containerships, the world’s largest containership, for China Shipping 

Container Lines on Jan. 20. (photo: HHI)

Hyundai Heavy Industries (HHI), the world’s biggest shipbuilder, began building the first of five 19,000 TEU containerships for China Shipping Container Lines (Hong Kong) Co. on Jan. 20.

The shipowner upgraded the original order for five 18,400 TEU containerships to ones capable of delivering 600 more containers. These new ships will be the largest containerships ever built.

The world’s largest containerships will feature a 77,200 bhp electronically-controlled main engine and two EcoBallast seawater treatment systems. The main engine will maximize fuel efficiency, and reduce noise, vibrations, and carbon emissions by automatically controlling fuel consumption to suit sailing speed and sea conditions. The EcoBallast system can treat 3,000 m3 of seawater per hour by filtering and sterilizing bacteria and plankton bigger than 50m with ultraviolet rays.

The first containership, measuring 400.0 m in length, 58.6 m in width and 30.5 m in depth, is scheduled to be handed over by November this year. The remaining four containerships are slated to be delivered by the end of the first quarter 2015.

HHI is rated to have the top competitive edge in the super containership area as the company has won 102 out of 360 10,000 TEU or more containerships ordered worldwide since HHI was awarded a 10,000 TEU containership shipbuilding contract for the first time in 2005.

An HHI official said shipowners have a tendency to favor 19,000 TEU containerships, which use 20 percent less fuel than 10,000 TEU ones, and containerships will go bigger than ever.

HHI and Sidem Win USD 1.4 Billion Az-Zour North Project in Kuwait

HHI and Sidem, a subsidiary of Veolia Water Solutions & Technologies, announced the signing of a USD 1.4 billion EPC contract with SHAMAL AZ-ZOUR AL-OULA on Dec. 12 to build the first phase of the Az-Zour North Independent Water and Power Project (IWPP).

HHI, as the EPC consortium lead, will carry out the construction of the gas-fired 1,500 MW combined cycle power plant. Sidem, as EPC consortium partner, will construct a 107 MIGD (486,000m3/day) desalination water plant on a turnkey basis. The capacity of Az-Zour North will account for around 10% of Kuwait’s installed power generation capacity and around 20% of its installed desalination capacity.

The consortium will complete the project approximately 100 km south of Kuwait City in the fourth quarter of 2016. Kuwait’s Ministry of Electricity and Water (MEW) will be the off-taker of power and water produced from the project under a 40–year long–term Energy Conversion and Water Purchase Agreement (ECWPA). The project is the first independent water and power project in Kuwait developed as part of long-term expansion plans of the power and water production capacity in Kuwait and a pathfinder scheme for Kuwait’s public-private partnership (PPP) program.

As EPC partners, HHI and Sidem have been participating in the development process together with the consortium formed by GDF SUEZ, Sumitomo Corporation and Abudlah Hamad Al Sagar & Brothers, since March 2011. Competition among developers from Europe, Japan, Korea and the Middle East was tough. A positive evaluation of HHI by the Kuwaiti Ministry might have benefited the award as HHI handed over Kuwait’s previous Sabiya Combined Cycle Power Plant far earlier than the required schedule, which enabled MEW to meet the challenging electricity demand during the summer peak load period of 2011.

Mr. Chun In-soo, COO of HHI’s Industrial Plant & Engineering Division said, “HHI, GDF SUEZ, and Sidem have worked together on a wide range of projects in the Middle East. The synergy of our alliance will ensure this project is completed in time and on budget.”

Buoyed by continued high oil revenues and rapid growth of the economy and the population, it is expected that large water and power projects will be steadfastly developed in the Middle East.