Israel Corp. (TASE: ILCO) subsidiary Zim Integrated Shipping Services Ltd. will buy up to eight container ships for $170 million each, for a total of $1.36 billion.
The ships will each have a capacity of 12,600 twenty-foot equivalent unit (TEU) containers. The ships will be delivered in 2012. Israel Corp. did not disclose the name of the shipyard that will build the ships.
Zim is considering contracts with Israeli and foreign companies affiliated with Ofer Brothers, the parent company of Israel Corp., as well as with third parties, for the possible sale of rights or long-term lease of the ships.
Zim said the purchase is part of its strategy to substantially expand its shipping capacity by increasing its fleet.
In June, Zim bought two container ships of 2,450 TEU each, and will have an option to buy two more, which will be due for delivery in 2010-11. The company has also been adding new global routes and services.
Published by Globes [online], Israel business news - www.globes.co.il - on September 5, 2007
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