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Neptune Orient Lines Ltd. (NOL), Southeast Asia’s largest container shipping line, has announced US$1.54 billion in ship orders and upgrades as part of its strategy to invest in larger vessels aimed at reducing unit capacity and operating costs and improving fuel efficiency.

NOL has signed letters of intent for the construction of 12 new vessels and is also upgrading an order placed last year for 10 ships.

The company has ordered 10 14,000 TEU ships from Hyundai Samho Heavy Industries Co. and two 9,200 TEU vessels from Daewoo Shipbuilding & Marine Engineering Co. NOL is also enlarging 10 8,400 TEU ships already on order at Daewoo to 9,200 TEU each. The 22 vessels are scheduled for delivery in 2013 and 2014.

The company said that the new ships are designed to meet future growth and replace older, smaller and less fuel-efficient chartered vessels that will be returned to their owners.

NOL Group’s shipping line, APL Ltd. is looking to add capacity as China boosts exports of car parts and furniture to the U.S. and Europe.

NOL said it will use the larger 14,000 TEU container ships on Asia-Europe routes, whilst the smaller vessels are likely to be deployed on trans-Pacific services.

APL is a key purchaser of bunker fuel in Southeast Asia. The company has around 80 vessels calling at Singapore - the world's leading bunker port - alone, making more than 900 port calls at the city-state per year.