Simatech to acquire four new vessels

Dubai-based feeder operator, Simatech Shipping, is to acquire four new vessels of 1,200 TEU 'feeder max' each.

The contract has been awarded to Germany's Peene Werft, which will deliver the first two vessels in March and May next year.

The other two are to be delivered in March and May of 2005. The value of the contract was not disclosed by company officials.

However, according to industry sources, such vessels carry a total price tag of around $100 million or so.

Simatech currently operates seven owned vessels and three on a charter basis. These are between 200 TEU and 1,200 TEUs.

"The new acquisitions are part of our company's efforts to increase our owned tonnage. This is in line with the projected growth of Dubai Ports Authority as a central hub in the Middle East which has prompted Simatech's decision," commented Ali Maghami, project manager at the company.

Simatech started operations in 1992 and has since grown to be one of the prominent feeder carriers in the Gulf.

"We are developing our philosophy of operating with owned tonnage, and the above order is a continuation phase of such philosophy. This will no doubt offer a better quality of service to our customers using Dubai as a hub port," Maghami added.