Singapore, November 5, 2023 – Nippon Export and Investment Insurance (NEXI) has announced its decision to provide comprehensive insurance coverage for loans extended to Wan Hai Lines (Singapore) Pte Ltd. (WHS), a subsidiary of the Taiwan-based Wan Hai Lines Ltd. (WHL). These loans are earmarked to facilitate WHS’s acquisition of eight 3,055 TEU container vessels constructed by Japan Marine United Corporation (JMU) and Nihon Shipyard Co., Ltd (NSY).
The financing consortium behind this venture includes Citibank, N.A., Tokyo Branch, Mizuho Bank, Ltd., and Japan Bank for International Cooperation (JBIC). NEXI’s insurance coverage, in this context, acts as a crucial backstop for the loan portfolio provided by commercial banks.
Wan Hai Lines Ltd. is a prominent player in container transportation and related services, primarily across the Asian market. NEXI’s engagement with WHS in this regard is not novel, as it has previously insured two loans that financed WHS’s procurement of container vessels constructed by JMU and NSY. The initial loan was extended in March 2020 to support the purchase of eight 3,036 TEU vessels, followed by a subsequent loan in April 2022 to acquire twelve 3,013 TEU vessels.
Wan Hai Lines’ evolution traces back to its origins as a raw log shipping company, operating in the regions of Taiwan, Japan, and Southeast Asia. Recognizing the burgeoning trends in containerization, the company diversified by acquiring its first full-container ship, the MV “Ming Chun,” in July 1976, thereby inaugurating container shipping operations between Taiwan and Japan. Over the years, Wan Hai Lines experienced substantial growth and consolidation within the containerized shipping sector.
In a strategic move in June 1983, Wan Hai inaugurated shipping routes to Kanto and Kansai, Japan, establishing itself as a leading entity in the Japanese shipping market. To better serve its Taiwanese clients who had invested in Southeast Asia, WHL expanded its service coverage to encompass South Korea, Singapore, Malaysia, Thailand, Indonesia, Vietnam, among others. This strategic expansion in intra-Asia shipping cemented Wan Hai Line’s position as the third-largest carrier in Taiwan, offering the most frequent voyages and an extensive service network within the Far East region.
NEXI’s latest insurance commitment to WHS signifies a continued collaboration, further supporting WHS’s ambitions in the container shipping industry. The insurance coverage ensures that the acquisition of these new vessels will proceed with confidence, aligning with the growth trajectory of both WHS and its parent company, Wan Hai Lines Ltd.
