3 million boxes! ONE will invest US$25 billion to expand shipping capacity
Currently, the global container shipping market is facing a situation of overcapacity. However, recently, Ocean Network Shipping (ONE), the world's sixth largest liner company, announced its latest development strategic plan. ONE's CEO stated that it will continue to increase shipping capacity.
ONE will invest US$25 billion to expand its container fleet capacity to 3 million TEUs by 2030, and invest approximately US$10 billion in expanding the container shipping value chain.
Alphaliner global capacity rankings (as of January 2, 2024)
ONE CEO Jeremy Nixon highlighted the company's rapid growth and achievements in its first four years of operation during an online briefing.
He noted that ONE has been consistently profitable since 2019, one year after it started operations, and currently operates 156 flights per week, covering 120 countries.
As of now, ONE’s capacity is slightly more than 1.8 million TEU, and another 30% of its capacity is under order. If the investment is completed, ONE will become the fifth liner company to break the 3 million TEU mark in addition to MSC, Maersk, CMA CGM and COSCO Shipping Lines.
Nixon pointed out that the shipping market is currently in turmoil. He believes that the impact of the epidemic is not over yet, and in the short term, they expect the epidemic, war and inflationary pressure to exacerbate industry uncertainty.
But he also said: "Container demand is still expected to grow, supported by strong fundamentals such as population growth, infrastructure development and global supply chain demand."
By 2030, ONE will have contracts for a capacity of 1.2 million TEU, about half of which will be used to replace existing ships. Looking forward, ONE expects to invest 150,000 TEU in production capacity annually.
In addition, ONE will also invest based on green strategies. It expects to reduce its scope 1 emissions by 70% by 2030, while scope 1, 2 and 3 emissions must be zero by 2050, and expects to deploy its first alternative fuel ship by 2030. (Scope 1 emissions are greenhouse gas emissions from direct combustion by a company, Scope 2 emissions are greenhouse gas emissions from energy purchased by a company, and Scope 3 is all emissions generated by a company outside of those two.)
ONE expects half of its investment to be spent on terminal acquisitions and digital transformation. They hope to acquire the terminal as well as assets from the three founding companies to create greater market efficiency.
ONE forecasts profits of $3.8 billion in the financial year ending March 2031, compared with forecast profits of $856 million for the April 2023 to March 2024 period.
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