The National Shipping Company of Saudi Arabia (NSCSA) is ordering new tonnage for its general cargo sector. It is contracting Hyundai Mipo Dockyard to build four 26,000 dwt ships designed for general cargo, RO/RO and project cargo and equipped with heavy lift cranes. The contracts include options for two additional ships. The total price tag, including the two option ships, is 1,543 million Saudi Riyals (about $412 million).
Deliveries of the first four ships from the shipbuilder will take place from the end of 2012 onward until the end of 2013. The first option ship would be delivered in 2013 and the second during the first quarter of 2014.
The first four ships will replace the current NCSA general cargo sector vessels and will operate on a liner service from the U.S. East Coast to the Middle East (Red Sea-Arabian Gulf) and to the Indian subcontinent via Europe.
Thuogh the deadweight of the new ships is less than that of the current ones, they offer more effective capacity utilization aspects and lower fuel consumption.
NCSA is in discussions with the Saudi Public Investment Fund and a number of commercial banks to finance about 80 percent of the project value through Shariah compliant financing for a 12 year tenor. The remaining 20 percent will be financed through the company's internal financial resources.
March 6, 2011