The National Shipping Company of Saudi Arabia (NSCSA)has signed four shipbuilding contracts and two additional optional contracts with Hyundai MIPO of South Korea.
The contracts' value including the two optional contracts amounts to 1,543 Million Saudi Riyals.
The National Shipping Company of Saudi Arabia (NSCSA)has signed four shipbuilding contracts and two additional optional contracts with Hyundai MIPO of South Korea.
The contracts' value including the two optional contracts amounts to 1,543 Million Saudi Riyals.
This comes as an implementation to its current strategical plan which calls for expanding the General Cargo sector in which the strategy recommended continuation and expansion in the RoRo, General and Project Cargo sectors which give a paramount importance in maximizing shareholders' returns and supporting the national economy of the Kingdom.
The delivery of the ships is expected to start by the end of 2012 onward until the end of 2013 and for the 2 optional ships; the delivery will take place in the year 2013 for the 1st one, and the 2nd one will be delivered during the 1st quarter of 2014, subject to NSCSA exercising the option.
Those ships are specialized in carrying general and projects' cargo and several types of RoRo cargo. The ships are equipped with heavy lift cranes and the deadweight of the ship is approx. 26,000 tons, in addition to the capability in carrying containers, in the designated area of the ship.
Despite that the deadweight of those ships are less than the current ones, those ships have capacity utilization aspects and lower fuel consumption.
The first 4 ships will replace the current aging fleet in this sector which are planned to be out of service for NSCSA in the years 2012-2013. The new ships will be serving as a liner between the United States East Coast to the Middle East (Red Sea-Arabian Gulf) and to the Indian Subcontinent via Europe.
The company currently is discussing with the Public Investment Fund and a number of commercial banks to finance about 80% of the project value through Shariah Compliant Financing for a 12 year tenor. The remaining 20% will be financed through the company internal financial resources.
Discussion about this post