Iran orders new supertankers worth $500m

27 Oct 2006

Dubai: Islamic Republic of Iran Shipping Lines (IRISL) said it has signed a $500 million contract with Iranian shipbuilders for 16 cargo vessels and plans to enter the LNG market.

IRISL is waiting for fin-ancing from Iranian banks for the new fleet of 16 panamax and handymax bulk carriers.

Mohammad Moghaddam-e-Fard, managing director of IRISL Middle East in Dubai, told Gulf News before the latest deal the company had 39 ships on order valued at $1.7 billion.

Six of these vessels are of 6,500 TEU (twenty-foot equivalent container units) capacity and four are capable of carrying 5,000 containers.

The company will take delivery of the ships between mid-2008 and January 2009 from Hyundai Heavy Industries and Hanjin shipyards in South Korea.

"With these vessels joining IRISL, the capacity of our container carrier fleet will increase from 31,000 TEUs today to 95,000 TEUs in 2009," Moghaddami Fard said.

"We feel the market for container carriers will remain strong in the years to come, especially in the Panamax and post-Panamax size," he said.

The company also has an existing order for two Panamax carriers from China and 16 double-skin Handymax bulk carriers of 53,000-tones capacity each.

In addition, six multipurpose ships of 25,000-tonnes each are being built in China and will be delivered in 2009.

With the introduction of post-Panamax vessels in 2008, IRISL plans to introduce new services. It is working on plans for a new Asia-Europe route.

Moghaddami Fard said the company will continue to focus strongly on the Gulf market. Its diversification plans include developing a viable energy transportation business.

"Entering the LNG market has already been studied by our management. Negotiations with top government decision-makers are going on to start transportation of LNG from Iran to target countries. The Iranian government has to decide," Moghaddam-e-Fard said.

Iran-O-Hind Shipping Company, IRISL's 51:49 joint venture with Shipping Corporation of India (SCI), is interested in the wet market and has already ordered a tanker from Hyundai.

"It will be delivered in 2007 and they are still in the market looking for new tankers," the IRISL official disclosed.

"IRISL will be diversifying in all (maritime) businesses.

"We have 11 affiliate companies which do different activities. We try to invest wherever we can," he said.