Eastern Pacific Shipping (EPS), led by Idan Ofer, has ordered four medium container ships from Japan's Imabari Shipbuilding. This contract, seen as a significant development in the company's new shipbuilding program, reflects EPS's desire to diversify its sources of ship supply and return to the Japanese shipbuilding market after four years.
Contract Details and Its Impacts
EPS, based in Singapore, has been identified as the buyer of these ships, and with this move, the number of container ships under construction rises to over 65, with a total value exceeding $5.5 billion. This new order comes at a time when EPS has focused more on developing its fleet in Chinese shipyards in recent years.
Further details regarding the contract price and delivery dates of the ships have not yet been released. EPS has become one of the most active owners in the container shipbuilding market, and given the market conditions, this step could help solidify its position in the international shipbuilding industry.
Japan's Efforts to Strengthen the Shipbuilding Industry
This contract comes as Japan seeks to rebuild its shipbuilding industry and reclaim lost ground to China and South Korea. Tokyo aims to double its annual shipbuilding capacity from about 9 million tons to 18 million tons by 2035, a plan supported by government financial backing.
Last September, Japan approved eight shipbuilding investment programs, which include approximately 900 billion yen (equivalent to $5.83 billion) planned for public and private investment. This budget is allocated for the development of docks, automation, cranes, and other production upgrades.
Additionally, Imabari has become Japan's largest shipbuilding group and the fourth largest in the world by tonnage by acquiring 60% of Japan Marine United's shares earlier this year. This merger occurs as Japanese shipyards face limited capacity, with statistics showing that there is almost no construction space available through 2029.
