2008 Aug 14

CSCL Sao Paulo is the Second of Six Newbuild Vessels Scheduled for Delivery in 2008

Seaspan Corporation (NYS announced today that it has accepted delivery of its 31st vessel, the CSCL Sao Paulo. The 2500 TEU newbuilding, which was constructed by Jiangsu Yangzijiang Shipbuilding Co., Ltd., is the second of its size in Seaspan's fleet. The CSCL Sao Paulo was delivered August 7, 2008, approximately sixteen weeks ahead of the original delivery schedule.

The CSCL Sao Paulo is subject to a time charter with China Shipping Container Lines (Asia) Co., Ltd. for a twelve year period. CSCL Asia is a subsidiary of China Shipping Container Lines Co., Ltd., the world's seventh largest liner company in terms of shipping capacity. Under the terms of the fixed-rate time charter, CSCL Asia is responsible for fuel costs and all cargo operating and related expenses.

Gerry Wang, Chief Executive Officer of Seaspan, commented, "We are pleased to take delivery of the CSCL Sao Paulo nearly four months ahead of schedule. This vessel is the second in a series of eight 2500 TEU vessels to be built by Jiangsu and chartered to CSCL Asia, a major liner company with a strong credit history. With the delivery of the CSCL Sao Paulo, we have further diversified our high-quality vessel portfolio and strengthened our fixed revenue and cash flow streams. We remain on track to take delivery of 37 remaining newbuildings over the next three years, including four additional 2500 TEU vessels in 2008. In the meantime, we are continuing to look for opportunities to execute our growth strategy and take advantage of the $850 million available to us in immediate liquidity."

About Seaspan

Seaspan owns containerships and charters them pursuant to long-term fixed-rate charters. Seaspan's contracted fleet of 68 containerships consists of 31 containerships in operation and 37 containerships to be delivered over approximately the next three years. Seaspan's operating fleet of 31 vessels has an average age of approximately five years and an average remaining charter period of approximately seven years. All of the 37 vessels to be delivered to Seaspan are already committed to long-term time charters averaging approximately 11 years in duration from delivery. Seaspan's customer base consists of seven of the world's largest, publicly traded liner companies, including China Shipping Container Lines, A.P. Moller-Maersk, Mitsui O.S.K. Lines, Hapag-Lloyd, COSCO Container Lines, K-Line and CSAV.


Source: Seaspan Corporation



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