NSCSA signs new shipbuilding contracts

The National Shipping Company of Saudi Arabia (NSCSA), on March 6, signed four shipbuilding contracts and two additional optional contracts for general cargo vessels with Hyundai MIPO of South Korea, Exim News Service reports.


The value of the contracts, including the two optional contracts, amounts to 1,543 billion Saudi Riyals, i.e., about $411 million.
This is part of the company's implementation of its strategic plan which calls for expanding the general cargo sector. The strategy recommends continuation and expansion in the ro-ro, general and project cargo sectors, which are of paramount importance in maximising shareholder return and supporting the national economy of the Kingdom.


The delivery of the four ships is expected to commence by the end of 2012 and will go on till end-2013. As for the two optional vessels, the first will be delivered in 2013 and the second in the 1st quarter of 2014, subject to NSCSA exercising the option.
The ships are specialised in carrying general and project cargo and several types of ro-ro cargo. With approx. deadweight of 26,000 tons, they are equipped with heavy lift cranes and can carry containers in their designated area.


Despite their deadweight being less than that of the existing vessels, the ships contracted to be built have better capacity utilisation and lower fuel consumption.


The first four ships will replace NSCSA's current ageing fleet in this sector, which is scheduled to be out of service during 2012-13. The new ships will be deployed on the Red Sea-Arabian Gulf liner service between the US East Coast and the Middle East and to the Indian Subcontinent via Europe.


The company is currently in discussions with the Public Investment Fund and a number of commercial banks to finance about 80 per cent of the project value through Shariah-compliant financing for a 12-year tenure. The remaining 20 per cent will be financed through NSCSA's internal financial resources.
(Source:http://www.transportweekly.com)