Naming of the "Hong Kong Express" - A superlative ship

The "Hong Kong Express", one of the world's largest containerships, was named today in the Chinese city of Hong Kong. The patron was Kerstin Larsson, wife of the Executive Board Chairman of Schenker AG, Hakan Larsson.

"We expect that this year Hapag-Lloyd Group will achieve a satisfactory sales of about €4 billion. Operating profit will in any case be substantial," stated Michael Behrendt, chairman of the Hapag-Lloyd Executive Board, on the occasion of the naming of Hapag-Lloyd's latest containership newbuilding in Hong Kong on November 7th 2002. Behrendt added that, taking into account the global slowdown, the results Hapag-Lloyd has achieved so far show that it has spread its risks effectively with a well-balanced portfolio strategy, which has contributed to its successful management particularly during downturns.

The "Hong Kong Express" was named by Kerstin Larsson, wife of the Executive Board Chairman of Schenker AG, Hakan Larsson. The vessel is the third newbuilding in a series of four ships. Like the "Hamburg Express" and "Shanghai Express", the "Hong Kong Express" will be deployed in the Europe-Far East service of Hapag-Lloyd Container Line. These vessels with 100,000 tonnes dead-weight are capable of carrying 7,500 standard containers and are among the world's largest containerships, with a length of 320 metres and width of 43 metres. The main engine, the size of a detached house, has an output of 69,000 kW, providing a speed of 25 knots, or approx. 50 km per hour. The fourth newbuilding will enter service in spring 2003, all ships operating under German flag.

In his speech at the naming ceremony, Günther Casjens, CEO of Hapag-Lloyd Container Line, pointed out that liner shipping has also been adversely affected by the global slowdown. There was a steady and substantial improvement in the third quarter, a development that is continuing. "We will still succeed in achieving double-digit growth and a transport volume of 1.9 million TEU in 2002. However, the drastic fall in rates will be reflected in our profit, although we will achieve a very satisfactory operating profit," Casjens explained, adding that this was an outstanding performance in the transport sector, attributable above all to Hapag-Lloyd's lean organization and use of comprehensive, future-oriented and globally standard IT systems.

Hapag-Lloyd's fleet policy is oriented to the swift growth that it has achieved in liner shipping for many years. Since 1998, it has put into service an average of two vessels annually. It will be taking delivery of four more 6,750 TEU containerships at the end of 2003 and beginning of 2004. Annual investment comes to €300–400 million. "Our orders are based exclusively on our long-term planning. Moreover, we make a point of deploying modern tonnage and replacing old units," Casjens emphasized, adding that Hapag-Lloyd has thus not contributed to further overcapacities – as caused by the many vessels ordered speculatively or to save tax.

Hapag-Lloyd has provided liner services to Asia since the end of the 19th century. Today it has a comprehensive network of branches in the region with headquarters in Singapore. In China, it has branches in Hong Kong as well as Shanghai, Xiamen and Shenzhen, not to mention six representative offices. It employs a total staff of 600 in Asia. Hapag-Lloyd will transport about 800,000 containers in its Asia services this year.