Swire Shipping PNG Service Announcement

13th May 2013



Swire Shipping’s existing tonnage on the Australia to Papua New Guinea (PNG) service, the Miho Class vessels, were specifically built for the Service and have served the trade well since their deployment in 1991. Whilst the Miho vessels were “jumboised” in 2003 to scale capacity to meet the increase in demand, the continuing growth in volumes and lack of investment in shore-side and port infrastructure means the vessels are now operating at their trading limits.

We are pleased to formally advise that CNCo’s shareholders have now approved the provisional design plans to build four 22,000dwt Chief Class multipurpose vessels at Zhejiang Ouhua Shipyard in China. The vessel design provides for a stepped increase in capacity to meet the next 15+ years forecast growth, whilst also giving the versatility and flexibility required to meet the challenges of operating in PNG and Solomon Island ports where infrastructure is still not conducive to accommodate larger more generic tonnage. As such, the Chief Class vessels represent a generational investment for CNCo and will allow Swire Shipping to increase deployed capacity, improve service reliability and enable long-term sustainability on the Australia trade.

We expect the Chief Class vessels will be available ex yard from January 2015. Given the lead time for tonnage delivery, we are pleased to advise Swire Shipping is making operational developments to upgrade our service levels in the interim period. We will be retonnaging the trade with two CNCo owned “K-Class” vessels (25,000dwt) joining three CNCo “Miho-Class” vessels from June 2013. The vessels are being redeployed from our Asia routes and will provide an increase in capacity of over 10,000 tons per vessel.

The first of the K-Class vessels, Kwangsi will replace the Highland Chief, with her maiden northbound voyage on the Service beginning in Melbourne, etd 20 June. The second vessel, Kwangtung will replace the Papuan Chief in July.

Swire Shipping is excited by these tonnage changes and the commitment to the Service they represent. For further information please contact your local Swire Shipping representative.