IPO brings in HK$491m for TS Lines to finance network expansion
Taiwanese liner operator TS Lines’ initial public offering (IPO) on the Hong Kong Stock Exchange ...
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Taiwanese regional carrier TS Lines has increased its capacity on its Far East-East Africa services and ordered two 4,300 teu ships at CSSC Huangpu Wenchong Shipbuilding, as it broadens its mid- to long-haul services.
The East Africa Express (EAX) service, currently operated by TS Lines, Emirates Shipping Line, Global Feeder Shipping, Interasia Lines, KMTC Line and RCL, with Evergreen taking slots, will be upgraded with a second loop from 20 October.
It calls at Qingdao, Shanghai, Ningbo, Nansha, Port Klang, Mombasa, Dar es Salaam, Port Klang and Qingdao, using seven 2,500-2,800 teu ships, with one skipped sailing in each cycle.
From 20 October, the two loops will targeting Kenya (Mombasa) and Tanzania (Dar es Salaam). EAX1, will turn in eight weeks, using eight 2,700-4,400 teu ships, calling at Qingdao, Shanghai, Ningbo, Nansha, Shekou, Port Klang, Dar es Salaam, Port Klang and Qingdao.
EAX2’s eight-week turnaround uses eight 2,500-3,100 teu ships, calling at Qingdao, Shanghai, Ningbo, Nansha, Port Klang, Mombasa, Port Klang, and Qingdao, from 21 October.
A TS Lines executive told The Loadstar: “The opening of these two services not only greatly increases shipping capacity between China and East Africa, but also effectively moves some of the pressure on Dar es Salaam to Mombasa, ensuring better reliability.”
A recent Clarksons report noted that global container trade grew 8% year on year to 58m teu in the first quarter, powered by emerging markets, including East Africa, which has become a target for China’s finished goods.
Dar es Salaam Port’s throughput has more than doubled from 2022/2023, helped by a $250m investment from DP World. Terminal 1 had previously handled just one boxship at a time, but last month achieved a breakthrough by working on two ships simultaneously for the first time after introducing a twin-lift system.
However, Xeneta’s chief analyst Peter Sand told The Loadstar that, compared with 2023, East Africa’s trade growth has slowed so far this year, increasing by just 3%, compared with other regions like South America, which has seen double-digit growth.
Originally an intra-Asia carrier, TS Lines made a comeback to long-haul routes this year, starting with services to the US west coast.
The company is not about to turn its back on its roots, and to meet growing demand in South-east Asia, will begin a Thailand Reefer Express (TRX) service with RCL on 21 October, connecting southern China with Thailand. RCL will first deploy the 1,707 teu Piya Bhum, with another vessel to be assigned by TS Lines.
TS Lines’ latest newbuildings signify steady progress in its fleet expansion, having ordered three 14,000 teu ships and two of 7,000 teu at Shanghai Waigaoqiao Shipbuilding in June. These will be delivered from 2026 to 2027. TS Lines now owns 40 of the 43 vessels in its fleet of over 270,000 teu.
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