Hyundai Heavy Industries wins US$700 million ship order from Iran

Hyundai Heavy Industries wins US$700 million ship order from Iran HYUNDAI Heavy Industries Co. has received a US$700 million order from Iran to build 10 ships. The order comprises four 14,500-TEU containerships for Islamic Republic of Iran Shipping Lines and six tankers to carry petroleum products for Iranian Offshore Oil Co. The vessels, which are part of a $2.5 billion plan to modernise the country's fleets, are scheduled for delivery starting from the second quarter of 2018, reported The Wall Street Journal. Iranian shipping companies haven't modernised their fleets since 2006, when the United Nations imposed wide-ranging sanctions against Tehran over its uranium-enrichment programme. 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. 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 containerised cargo, company officials have said. Separately, HHI said it also signed a $600 million deal to build two ships, including a submarine, for the South Korean government. The two deals are a welcome respite for Hyundai as shipbuilders are suffering from a virtual halt of new orders as shipping is trying to cope with glut of tonnage in the water estimated at 30 per cent above demand.