Dubai: The Al Jaber Group on Sunday announced that it has awarded a $500 million (Dh1.835 billion) contract to Chinese shipbuilder Jiangsu Hangtong Ship Heavy Industry to build and supply eight bulk carriers.
"The deal that was signed with Jiangsu Hangtong Ship Heavy Industry will position Al Jaber Shipping Agency and Marine Works as the biggest privately-owned shipping company in the Middle East with a total capacity of 651,800 deadweight tonnes," said a company statement.
The deal will complement Al Jaber's fleet of 38 vessels. Al Jaber will receive the first vessel in October 2010, followed by a new vessel every four months.
Obaid Khalifa Al Jaber, chairman of Al Jaber Group, said, "This purchase has officially made us the biggest private shipping company in the Middle East both in terms of tonnage capacity and number of ships."
Each of the new eight double-hull Dolphin type bulk carriers will have a cargo capacity of 56,300 tonnes, and will be equipped with advanced marine technologies.
A crew of 20 members will operate the state-of-the-art vessels that will be rented on daily time chartered basis to shipping companies and shipping chartering companies around the world.
Mohammad Al Jaber, chief executive of Al Jaber Group, said, "This deal is in line with our vision to continuously expand at all levels. Such moves secure the sustainable growth of the group and enable us to maintain our strong and competitive position."
A British company has been appointed to supervise and follow up on the construction process of the vessels.
The company is in talks to rent out four out of the eight ships for long time charter.
Established in 1970, Al Jaber Group is one of the leading business conglomerates in the UAE with revenues of over $2 billion.
