UASC Container Vessels to Be “LNG Ready”

United Arab Shipping Company (UASC) is proud to announce signing of a vessel newbuilding program for some of the greenest and largest container vessels in the world. The order has been placed with Hyundai Heavy Industries (HHI) in Korea. The order, the largest in UASC’s history, is worth over US$ 2 billion including all options, and features vessels that will be amongst the largest, most technologically advanced and most environmentally friendly container vessels ever built.

UASC hosted a signing ceremony in Dubai where the newbuilding contract was signed with HHI for five 18,000 TEU vessels and five 14,000 TEU vessels. The order includes options for one additional 18,000 TEU vessel and six additional 14,000 TEU vessels.

The contract was signed by Dr. Abdul Aziz Al-Ohaly, UASC Board Director, and by Mr. O. H. Kim, HHI President and Chief Operating Officer. The ceremony was also attended by Sheikh Ali Bin Jassim Al Thani, UASC Board Director, Mr. Jorn Hinge, UASC President and Chief Executive Officer, and Mr. Basil Al-Zaid, UASC Chief Financial Officer. Other members of the senior management teams of UASC and HHI and representatives from several of UASC’s strategic partners also joined the ceremony.

Dr. Al-Ohaly remarked, “UASC makes history today with its largest ever newbuilding order. This is a critical step for the Company to deliver on its long-term growth objectives. In addition, UASC hopes to set new benchmarks for fuel economy and environmental performance.”

Sheikh Ali Al Thani commented on the occasion, “We have looked critically at what it will take to ensure a successful and sustainable future for UASC, and are making significant investments in order to enable the company to achieve its objectives. With our previous investment in nine 13,500 TEU vessels, we have successfully established UASC’s fleet as one of the youngest and most environmentally friendly in the world. Today’s order builds on that foundation and takes UASC’s future fleet to the next level.”

O. H. Kim commented that, “four decades of relationship witness container ship size of UASC at Hyundai grow sixteen-fold, in other words from One Thousand One Hundred (1,100) TEU to Eighteen Thousand (18,000) TEU!”.

Jorn Hinge remarked, “Today we celebrate yet another important milestone in UASC’s transformation and growth story. With this new order, UASC aims to improve its competitiveness in the key trade lane between Asia and Europe where we plan to deploy the 18,000 TEU vessels. Furthermore, we believe UASC will also improve its position in its other key trades through the deployment of the 13,500 and 14,000 TEU vessels. In an environment where fuel oil remains the largest cost driver in the industry, our cutting-edge vessel designs have been developed with a clear focus on improving cost efficiency and enhancing environmental friendliness. These vessels will also be the first large container vessels that will be “LNG ready” at delivery.”

Basil Al-Zaid stated, “Our Shareholders’ unwavering commitment and strong support from commercial lenders and export credit agencies (ECAs), including Export-Import Bank of Korea and Korea Trade Insurance Corporation, has been key to sustaining UASC’s credit strength. I would also like to highlight the importance of the Middle East regional banks, which have demonstrated their commitment and worked alongside the international banks and ECAs to close this transaction in record time.”

The 14,000 and 18,000 TEU newbuildings are scheduled for delivery from late 2014 and from the first half of 2015, respectively.

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LNG World News Staff, September 4, 2013; Image: UASC