EMEA News
UAE Shipper Buys Fuel Saving Vessels for "Aggressive" Expansion
As part of what it calls "an aggressive regional expansion," the United Arab Emirates' Simatech Shipping says it has ordered two 4,350-twenty-foot equivalent unit (TEU) container ships, citing fuel savings as the reason for buying newbuilds.
The $150 million deal, the first containershp order in eight years for the Dubai-based company, is with Taizou Kouan Shipbuilding in China, with delivery staring in the second half of 2015.
The order, which the company says represents a shift in focus to larger ships, includes an option for two more vessels.
The new ships will be used on the company's China-India route.
"The saving in bunker consumption was the main reason for choosing this new design ships despite the good number of post-panamax ships that are available in the market," said Simatech chairman and chief executive Mohammad Maghami.
Simatech, which currently has 10 vessels, said it is working with Evergreen and Nippon Yusen Kaisha Line [TYO 9109] (NYK Line) to start a new service linking India, Bangladesh, and Pakistan using four 1,700-TEU vessels.
The company is also expanding its operation on the east coast of Africa, adding a second feeder vessel on its Jebel Ali-Mogadishu service, and developing a modern container terminal and merchant marine academy in Mogadishu.
Another Middle Eastern carrier, United Arab Shipping Co. (UASC) is increasing its service by using Triple-E containerships to start a new Europe to Asia service.
