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Sun 10 Nov 2013 02:00 PM

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UAE's Tristar inks $200m deal for new oil tankers

Firm order placed with Korean shipbuilder Hyundai Mipo Dockyard; delivery slated for 2016

UAE's Tristar inks $200m deal for new oil tankers
(Photo for illustrative purposes only)

UAE-based Tristar Transport Company said on Sunday it has placed a firm $200m order for six new tankers with Korean shipbuilder Hyundai Mipo Dockyard.

The vessels are expected to be delivered in 2016 and will be built to the latest specifications with an improved hull form design, making them more fuel efficient and eco-friendly, the company said in a statement.

When delivered it is anticipated that the ships will be placed on long term time charter with an oil major, it added.

"Demand for this type of vessels has increased with new building prices rising by around 20 percent this year. High bunker prices make fuel economy a major factor at present and in the future," the company said.

According to latest market analysis, tankers hauling refined oil products are expected to return to profitability from next year, for the first time since 2008.

The rise in charter rates are being strengthened by the biggest expansion in Middle East crude refining on record.

Tristar said it is confident of taking advantage of the expected increase in charter rates along with lower initial costs.

Established in 1998 with headquarters in the UAE, Tristar is an integrated liquid logistics company specialising in petroleum and chemical handling and distribution.

Eugene Mayne, Tristar Group CEO, said: "This investment fits in with our long term strategy to diversify our business portfolio and to position our company as a major player in the clean product tanker segment."

Tristar operates in 13 countries and employs more than 1,800 people.

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