Ambitious expansion plans give an indication of a sector's performance. IRISL's Moghaddami Fard spoke to Gulf News about the developments in the shipping and shipbuilding business as well as his company's future plans.
Gulf News: Which areas represent potential business opportunities?
Fard: IRISL is diversifying into different business areas. We have a joint venture with Shipping Corporation of India (SCI) called Iran-O-Hind Shipping Company. They are interested in the wet market and have already ordered a tanker from Hyundai. It will be delivered in 2007 and they are still in the market looking for new tankers.
Meanwhile, we find the LNG market very interesting. And our management has already studied how to enter the market. Negotiations with top government decision-makers are going on to start transportation of LNG from Iran to target countries. The Iranian government has yet to decide.
How is your fleet expansion progressing?
We really feel the market for container carriers will remain strong in the years to come, especially in the Panamax and post-Panamax size.
Since 1997 we have received 39 vessels of different sizes from various countries, especially from South Korea, China and Germany.
At present we have 39 vessels on order with a value of $1.7 billion. These orders comprise 10 Panamax and post-Panamax carriers. Six vessels are of 6,500 TEU capacity and four are of 5,000 TEU capacity.
We will take delivery of these vessels from mid-2008 until January 2009 from two Hyundai Heavy Industries and Hanjin shipyards in South Korea. With these vessels joining IRISL, the capacity of our container carrier fleet will increase from 31,000 TEUs today to 95,000 TEUs in 2009.
We have also contracted two Panamax carriers from China, 16 double-skin handimax bulk carriers of 53,000-tonne capacity each. On top of these bulk carriers, we have six multipurpose ships of 25,000-tonne capacity each that will be built in China and will be delivered to us in 2009. Most of the ships have been financed by Korean and European banks.
We will take delivery of 34 vessels between now and 2009. Some ships will be delivered in 2010. Our deadweight tonne (DWT) will reach 5.3 million tonnes compared with 3.7 million tonnes today.
Do you have any new orders in the pipeline?
In order to tap into the Iranian shipbuilding industry, we have contracted six vessels of 2,200-TEU capacity each in Iran. Of these one has been delivered and five are expecting to be delivered within two years.
We have also negotiated with the same group of shipbuilders for an additional 16 Panamax and handimax bulk carriers.
We are expecting $500 million for financing these units from Iranian banks.
Do these new orders indicate a wider offering of services?
With the introduction of post-panamax vessels in 2008, we will definitely have new services. We are now working on an East-West route. But we will continue to focus strongly on the Gulf market.
