Business | Shipping
Gulf Navigation Holding signs Dh145m ship deal
Gulf Navigation Holding (GNH), the region's rapidly growing oil and chemical carrier, and ST Shipping and Trading have signed a charter agreement for three ships at an approximate value of $40 million (Dh145 million).
- Staff Report
- Published: 00:00 July 29, 2006
Dubai: Gulf Navigation Holding (GNH), the region's rapidly growing oil and chemical carrier, and ST Shipping and Trading have signed a charter agreement for three ships at an approximate value of $40 million (Dh145 million).
ST Shipping and Trading is the shipping arm of Switzerland-based Glencore, one of the largest oil trading houses in the world.
Under the terms of the agreement, GNH will time-charter two ships to ST Shipping and Trading for up to two years under long-term fixed rate employment, and a third at a floating market rate with a fixed minimum charter rate. The process for delivery of the three vessels will be completed in the next few days.
The vessels are double hull with a deadweight of 48,000 metric tonnes each and have a liquid capacity of about 50,000 cubic metres. The vessels are capable of speeds of up to 15 knots.
Speaking about the contract, Gazi Al Ebrahim, managing director and CEO of GNH, said: "The confidence Glencore has placed in us through this deal reflects the credibility of our operations as a global operator. This also demonstrates the strong demand and excellent rates that our fleet commands in the shipping market.
"We are happy to include Glencore in our global list of long term partnerships and look forward to growing this relationship further," he added.
Gulf Navigation is now amid an initial public offering of Dh910 million, to list on the Dubai Financial Market, which is currently open to subscription from GCC nationals and corporations.
The receiving banks for the subscription in the UAE include National Bank of Abu Dhabi, Emirates Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Financial Services, Finance House, First Gulf Bank, Mashreqbank, National Bank of Fujairah, Union National Bank and HSBC. In addition to the UAE, HSBC will open its branches for subscription in Qatar, Oman and Bahrain.
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