The National Shipping Company of Saudi Arabia (NSCSA) has a strategic plan to double its fleet by 2010 through a newbuilding programme and the purchase of tonnage that is less than five years old. The tanker and LPG vessel operations are headed by Saleh A. Al-Shamekh, President of Oil and Gas. The oil fleet is operated from NSCSA’s Dubai office. The Saudi Arabian Government owns 28 per cent of this company, while the remainder is listed on the Saudi stock exchange.

“Our plans are very ambitious,” says Saleh Al-Shamekh. “Our target is to have a fleet of 20 VLCCs by 2010 and 32 chemical tankers by 2011. We took delivery of two DNV-classed tankers last year and another two will be delivered this year.” Another four will be delivered in 2009. Of the current fleet of 11 ships which NSCSA owns and operates, six are on time charter. The fleet is young, with an average age of only eight years. The double-hulled vessels are built to high international standards, with a capacity of 2.1 million barrels and a dwt of more than 300,000. Including the newbuildings, the fleet’s total capacity will increase to 5,250 million dwt with the six vessels due for delivery between 2007 and 2009.
“Our fleet operates internationally and we have made a strategic decision to have some 70 per cent of the fleet in the spot market, with the remainder on long-term time charters. The spot rates have fluctuated wildly lately, but in the long-term perspective we believe that the global oil demand will require the fleet we have at our disposal. We basically serve international oil companies with a mix of time and spot contracts,” says Al-Shamekh.
In 2003, NSCSA acquired a 30 per cent share in Petredec Ltd who is a LPG Trader & Shipowner – which operates a fleet of more than 50 LPG vessels with a total cargo volume of 795,000 m3, including two VLGCs each with a capacity of 83,000 m3.
VLCCs and LPGs are not the only vessels controlled by NSCSA, as its subsidiary National Chemical Carriers (in which it has an 80 per cent stake) is the main player in NSCSA’s chemical transportation business. The owned fleet consists of 12 chemical carriers and another ten are under construction – an order that was expanded to 16 vessels for delivery from 2009 to 2011.
NSCSA also operates a liner service and a global freight forwarding division to provide customers with a one-stop total service package. Finally, Mideast Ship Management Ltd, a fully owned subsidiary, manages the fleet of VLCCs, chemical tankers and roro vessels.
When asked about the expansion plans vs recruitment, Al-Shamekh says that this is also a worry for NSCSA: “Our officers are mainly Europeans and most of the crew are from the Philippines. We have our own crewing office and training facility on the Philippines, and put considerable resources into manning and training. We also have a cadet programme on board our ships in which Filipino, Saudi and European cadets participate.”
NSCSA, which is headquartered in Riyadh, Saudi Arabia, had a turnover of some SR 1.7 billion in 2007, with profits of SR 422.26 million and 350 employees within the group.

Date: 2008-03-14