SearchHyundai Heavy Gets $700 Million Deal to Build 10 Ships for Iran Shipping Lines

Hyundai Heavy Gets $700 Million Deal to Build 10 Ships for Iran Shipping Lines ... 11/12/2016 Economy

Keywords:#Daewoo, #European, #European_Union, #Greek, #Hyundai, #Hyundai_Heavy, #IRISL, #Incheon, #Iran, #Iran_Shipping_Lines, #Iranian, #Iranian_Offshore_Oil_Co, #Islamic, #Islamic_Republic, #Islamic_Republic_of_Iran, #Islamic_Republic_of_Iran_Shipping_Lines, #January, #Korea, #Middle_Eastern, #National_Iranian_Oil_Co, #Nations, #New_York, #Offshore, #Paris, #Samsung, #South_Korea, #South_Korean, #Tehran, #United_Nations,

An Islamic Republic of Iran Shipping Lines vessel docked at a pier in the port city of Incheon, South Korea, in June. Photo: European Pressphoto Agency

* * * By In-Soo Nam
Dec. 10, 2016 10:17 p.m. ET
SEOUL— Hyundai Heavy Industries Co. received a $700 million order to build 10 ships for Iran’s state-owned shipping company in a deal that signifies the Middle Eastern country’s return to the international market after a decade.
The deal is part of plans by Islamic Republic of Iran Shipping Lines and Iranian Offshore Oil Co., a subsidiary of state oil company National Iranian Oil Co., to spend a total of up to $2.5 billion to modernize their fleets.
Iranian shipping companies haven’t modernized their fleets since 2006, when the United Nations imposed wide-ranging sanctions against Tehran over its uranium-enrichment program. The sanctions began to be gradually lifted in January.
“This marks Iran’s first ship order since international sanctions were lifted early this year. Hyundai plans to provide technical support for Iran to run its shipyards as well,” the South Korean company said Sunday.
Separately, Hyundai Heavy, the world’s largest shipbuilder by revenue, said it has also signed a $600 million deal to build two ships, including a submarine, for the South Korean government.
The two deals valued at a combined $1.3 billion—its largest order this year—are a welcome respite for Hyundai and other shipbuilders suffering from a virtual halt of new orders as shipping is trying to cope with glut of tonnage in the water estimated at 30% above demand.
South Korean shipbuilders have been selling noncore assets and slashing thousands of jobs to cope with the shrinking orders. South Korea is home to the world’s three largest shipbuilders—Hyundai Heavy, Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co.
The Iranian order involves four mega-container vessels capable of moving 14,500 containers each and six tankers for petroleum products. The first deliveries are expected in the second quarter of 2018.
Islamic Republic of Iran Shipping Lines, or IRISL, operates about 115 oceangoing vessels, but many of the ships are old and have been deemed unsafe to travel and can’t be insured.
As Iran moves to build modern fleets, its companies have been chartering vessels from Greek and other owners to build market share in container and tanker cargoes.
IRISL hopes the latest container order will give it the necessary capacity to eventually join one of three major shipping alliances that move the vast majority of global containerized cargo, company officials have said.
Annual seaborne trade between Iran and the European Union amounted to $15 billion before the first broad, international sanctions were imposed on the country in 2008. Tehran expects to return to that level by 2020.
—Costas Paris in New York contributed to this article.
Write to In-Soo Nam at
--- ---

Read more from Source »

Related articles based on keyword density
GLOBAL TOP 1000 WEBSITES 2016 – Ratak IT... 16/03/2017 News
Ratak introduces global Top Websites of 2016 Data for table Top201702 1,Abarkooh,Armenia,Bahram 2,Bahram 3,Britain,Caesar,Carus,...View Details»

Iranian Oil, Shipping Companies Set $2.4 Billion in Ship Deals ... 08/06/2016 Economy
The preliminary agreements mark Iran’s efforts to make a comeback in global shipping *** Ship carrying Islamic Republic of Iran Shipping Lines cargo....View Details»

Middle East - Security Council debates ending UN sanctions on Iran - ... 13/03/2015 News
Major world powers have begun talks about a UN Security Council resolution to lift UN sanctions on Iran if a nuclear agreement is struck with Tehran, ...View Details»

New Iran-South Korea container service sign of growing ties ... 14/06/2016 Import-Export
By Turloch Mooney, Senior Editor, Global Ports | Jun 14, 2016 8:07AM EDT *** Port of Incheon Islamic Republic of Iran Shipping Lines launched a new, d...View Details»

The Human Costs of the Iran Sanctions - By Joy Gordon | The Middle Eas... 22/10/2013 News
Posted By Joy Gordon Friday, October 18, 2013 - 11:09 AM In June of last year, an American college student walked into the Apple store in Alpharetta...View Details»