JEDDAH: The National Shipping Company of Saudi Arabia (NSCSA) signed Saturday a financing agreement worth SR822.6 million with a number of national banks to fund purchase of four new ships.
The financing agreement was signed by Saleh Al-Jasser, CEO of NSCSA, who said the accord reflected the confidence of national banks in his company.
The NSCSA had signed a deal valued at $400 million (SR1.5 billion) with South Korean company Hyundai Mipo Dockyard Co. Ltd. (HMD) for the construction of four general cargo ships. The four ships will have a deadweight of 26,000 tons and will be equipped with heavy-duty cranes.
The ships will replace four vessels from NSCSA's current fleet and offer more effective capacity utilization and better fuel efficiency. NSCSA will operate the ships on a liner service that travels between the United States, the Middle East, India, and Europe.
HMD will deliver the ships starting in 2012 and will complete delivery by 2014. The contract also includes the option for two additional ships.
© Arab News 2011
