Al Jaber to buy eight ships for $500 million

Eight bulk carriers have been ordered by Al Jaber Group in a $500 million (Dh1.8bn) deal that will transform the company into the largest shipping operator in the Middle East.

The vessels, to be made in China by Jiangsu Hangtong Ship Heavy Industry, will increase Al Jaber Shipping Agency and Marine Works' deadweight capacity to 651,800 tonnes. The company currently has 38 ships.

The first vessel will be delivered in October 2010 followed by new ship every four months.

"With the purchase of the new eight bulk carriers, we officially become the biggest private shipping company in the Middle East, both in terms of tonnage capacity and number of ships," said group Chairman Obeid Khalifa Al Jaber.

"We are very pleased to be able to play a leading role in the shipping industry in the region and promise to continue to provide unmatched service combined, while continuously upgrading our fleet."

Group CEO Mohammed Al Jaber said: "This deal is in line with our vision to continuously expand all our companies. Such moves secure the sustainable growth of the group and enable us to maintain our strong and competitive position."

Each of the eight Dolphin double hull carriers will have a capacity of 56,300 tonnes and will be equipped with the latest technology. The vessels will be rented on a daily time chartered basis to shipping and chartering companies around the world.

Negotiations with Jiangsu lasted for several months and a British firm has been appointed to supervise the construction process and ensure adherence to the highest quality standards and specifications.

Al Jaber's fleet includes landing craft, hot bitumen carriers, oil tankers and crew boats.

Group Chief Operating Officer Fatima Al Jaber said: "With the increasing demands in the shipping sector in the region, and due to the strategic position of the UAE, we were keen to upgrade our fleet."