Norwegian ro-ro operator Hoegh Autoliners said it will emphasise fleet expansion in the next few years because existing capacity cannot cope with the growing demand.

Fast-tracking the process, the company has linked up with Denmark's AP Moller-Maersk through its unit, Maersk Shipping Singapore, to jointly deploy their car-carrier fleets together.

The deal became operational February 1 and will involve 67 ships under the name Hoegh Autoliners. While each company will manage and crew their own ships, the venture will be run from Hoegh Autoliners head office in Oslo.

Demand for ro-ro vessels has been surging in recent years in Asia, especially in China, a Hoegh Autoliners official told the Asian Shipper and the line intends to expand its fleet from 50 to 70 vessels over five years.

Seven of the new vessel orders will be delivered this year, which will allow the company to allocate more space to serve the China market.

The company's most recent delivery was a 6,500-CEU (Car Equivalent Unit) vessel built in South Korea. The US$75 million 200-metre panamax vessel is close in size to the biggest ro-ro ships of 7,000 CEU, and will serve a global trade between Asia, Europe and the US.

Hoegh Autoliners builds most of its big ships in South Korea, Japan and Europe and some smaller ones in China. But the official said China will soon supply more as its shipyard capacity is expanding rapidly.

Hoegh Autoliners now has Beijing and Shanghai offices but has no immediate intention to open more. "Our investment is in vessels. Ships can be operated anywhere. With our staff from the two offices, we can cover all of China. Even today, our vessels are calling on Hong Kong and we do business with car manufacturers in Guangzhou," he said.

Hoegh Autoliners business volume doubled from 900,000 CEU six years ago to 1.8 million CEU last year. In 1990, the company operated 20 vessels and handled 500,000 CEU and now it operates 50 ships and handles 1.8 million CEU a year.

The company saw many new customers in China last year and currently it has connections with more than 50 Chinese automakers, among them JMC, JEC, FAW, Dongfeng and Shanghai Automobile.