Financial crisis not stopping Saudi plans

Saudi Arabia's state tanker firm The National Shipping Company of Saudi Arabia (NSCSA) is sticking to plans to double its fleet by 2011 despite the ongoing economic downturn. Previous reports said NSCSA's VLCC fleet would swell to 20 by 2010 although that figure dropped to 17 on record newbuilding prices, while its chemical fleet was slated to expand to 32 vessels by 2011.
Recent reports have quoted NSCSA president, Saleh A Al-Shamekh, confirming that his firm will have 50 VLCCs and chemical tankers by 2011.

“We are shipowners who have embarked upon an ambitious plan, which called for doubling our fleet in 2006,” Al-Shamekh said. “We didn't know that the financial crisis would hit everybody. But we are still continuing with our strategic plan.” Al-Shamekh said that NSCSA has been affected by the financial crisis “but is still optimistic the waves will turn for better in the mid-term.”

“Earnings for VLCCs have held up despite the downturn in shipping at large. Revenue-wise, this year has been good. I can say this is a record year and it will surpass our growth last year.”
According to Al-Shamekh, lower crude output and forecasts of a demand slowdown have ''adversely affected'' tanker operators, but he also added that lower bunker costs had been cutting the cost of operations.

Another cause for optimism was the increasing number of tankers being used for storag, he said.
NSCSA is scheduled to take delivery of four VLCCs in 2009.

From Tanker World
Cowan Thant Zin, 29th December 2008 04:20 GMT