Pacific International Lines (PIL) of Singapore has splashed out on a raft of multipurpose (MPP) vessels and a boxship at China’s Dalian Shipbuilding Industry Co as the company’s outlook on the liner industry becomes increasingly rosy.

PIL deputy managing director Tan Chor Kee confirms it has signed contracts at Dalian for its first-ever series of MPP newbuildings. The four 24,000-dwt ships are said to be costing $29.9m each for delivery in 2012.

According to Tan, they will be used on the MPP service PIL launched in March between China and West Africa. The service marks the first time in well over a decade that PIL has operated anything other than a dedicated container liner service. 

“We started that service based on the increasing demand for project-cargo services from China to West Africa. At present we are using tonnage that has been chartered in but our plan is to run the service with our own ships. That is why we decided to order the four MPP ships,” Tan said. 

PIL has also returned to Dalian for another 1,800-teu boxship, bringing the number of vessels in this so-called N-class it has ordered at the yard over the past three years to nine. 

Tan says the vessel will be geared and used on PIL’s growing services to Africa from its delivery in June 2012. Although some broking reports suggest PIL ordered two boxships, Tan tells Trade­Winds that it was only a single ship. 

“We are ordering ships at Dalian all the time, so there is a possibility there will be a 10th,” he explained. 

PIL ordered its first N-class vessels at Dalian back in 2007. Pricing for the individual ships varied between $35.5m and $39m based on early delivery slots and a heavy tail payment. Tan does not disclose what PIL is paying for the latest vessel, although there have been some market suggestions that it is at the lower end of the range PIL paid for its initial N-class ships. 

Tan says he is upbeat that the liner industry is well on the way to recovery. 

“Rates and volumes are increasing so I am very optimistic about the future,” he added. 

In fact, he notes his biggest worry for the immediate future is a possible shortage of boxes given that many idle units were sold off or scrapped during the downturn and very few new boxes have been purchased in the interim.

“Lines are facing a shortage of containers and it’s getting very critical. It could have a negative effect on the recovery,” Tan said.