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Tue 26 Apr 2011 07:03 PM

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Dubai shipping firm to launch Saudi joint venture

Gulf Navigation Holdings says new company will list in kingdom once approval is obtained

Dubai shipping firm to launch Saudi joint venture
Dubai-based shipping company Gulf Navigation Holdings is set to launch a joint venture in Saudi Arabia.

Dubai-based shipping company Gulf Navigation Holdings said on Tuesday it was set to launch a joint venture in Saudi Arabia.

The company announced the signing of mandates with Deutsche Securities and King and Spalding, both of Riyadh, to secure the equity and establishment of the subsidiary.

The new company will list on the Saudi stock market once approval is obtained, Gulf Navigation said in a statement.

Gulf Navigation's new entity in the kingdom will own four very large crude carriers (VLCC) and will expand the fleet to nine vessels by 2015.

The company's five-year plan will see the expansion of the carrying capacity of crude oil to 18 million barrels, chemical carriers to 12 and establishing an Aframax and offshore fleets.

Last week, the company said it had signed a deal with a Chinese shipyard to build two super tankers.

The contract was inked with Zhoushan Jinhaiwan Shipyard of Shanghai and will see the VLCCs delivered in December 2012 and May 2013.

The sister ships have a carrying capacity of more than two million crude oil barrels each, the shipping firm said in a statement.

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