TEN ships ordered by Islamic Republic of Iran Shipping Lines (IRISL) from South Korea's Hyundai Heavy Industries Co (HHI) will reduce the average age of Iran's fleet of cargo ships by four years, down from 16 years to 12.
CEO of IRISL Mohammad Saeedi said Iran will take delivery of the first South Korean containership between March and April 2018, reported Tasnim News Agency, Tehran.
The IRISL signed a deal to buy 10 ships, including 14,500 TEU container ships and 50,000 DWT product tankers, from HHI in December 2016.
The US$650 million contract was financed by Korean banks. The ship order is part of the shipping line's plans to renovate its fleet through a total investment of $2.5 billion.
The company operates 115 vessels, however, some of the ships are old, have been deemed unsafe to travel and cannot be insured.