Iran in talks with Hyundai yards over orders of new 14,000-TEU ships
THE Islamic Republic of Iran Shipping Lines (IRISL) is in talks with Hyundai Heavy Industries (HHI) to purchase three ships of more than 14,000 TEU, IHS Media.
"In 2008, IRISL ordered some ships in our sister yard, Hyundai Mipo Dockyard, but that order was suspended when sanctions kicked in. Now, IRISL wants larger ships, which is under the purview of HHI," said a shipyard source.
The deal between both companies comes at a time when the shipbuilding industry is in a state of immense loss as a result of the slump in global demand, which is also having a knock-on effect on container shipping.
The UK's Port Technology International previously reported that the top three shipbuilders may merge operations in order to deal with the decrease in its revenue.
IRISL's decision to place the order is in line with its previous announcement to acquire more than 575,000 TEU of containerships, which will be operational by 2020.
Last October, the Shipping Gazette reported that Iran planned to invest US$120 billion to expand its fleet and that IRSL expected to buy a total capacity of 579,000 TEU.
The shipping line is also in the market for two million deadweight tons (dwt) of dry bulk vessels and 1.6 million dwt of tankers. IRSL's current fleet includes 87 ocean-going vessels and an additional 28 vessels under the flag of its subsidiaries.
The head of IRSL, Mohammad Saidi, said all the new ships will be operational by 2020 and that the funding for the US$120 billion fleet expansion campaign will come from billions in frozen oil revenues in international banks which are expected to be released once the US-led sanctions are lifted, reported Fort Lauderdale's Maritime Executive.
Iran is expected to place most of its orders in China, as relations with China and Chinese banks will allow IRSL to place favourable orders at Chinese shipyards.
THE Islamic Republic of Iran Shipping Lines (IRISL) is in talks with Hyundai Heavy Industries (HHI) to purchase three ships of more than 14,000 TEU, IHS Media.
"In 2008, IRISL ordered some ships in our sister yard, Hyundai Mipo Dockyard, but that order was suspended when sanctions kicked in. Now, IRISL wants larger ships, which is under the purview of HHI," said a shipyard source.
The deal between both companies comes at a time when the shipbuilding industry is in a state of immense loss as a result of the slump in global demand, which is also having a knock-on effect on container shipping.
The UK's Port Technology International previously reported that the top three shipbuilders may merge operations in order to deal with the decrease in its revenue.
IRISL's decision to place the order is in line with its previous announcement to acquire more than 575,000 TEU of containerships, which will be operational by 2020.
Last October, the Shipping Gazette reported that Iran planned to invest US$120 billion to expand its fleet and that IRSL expected to buy a total capacity of 579,000 TEU.
The shipping line is also in the market for two million deadweight tons (dwt) of dry bulk vessels and 1.6 million dwt of tankers. IRSL's current fleet includes 87 ocean-going vessels and an additional 28 vessels under the flag of its subsidiaries.
The head of IRSL, Mohammad Saidi, said all the new ships will be operational by 2020 and that the funding for the US$120 billion fleet expansion campaign will come from billions in frozen oil revenues in international banks which are expected to be released once the US-led sanctions are lifted, reported Fort Lauderdale's Maritime Executive.
Iran is expected to place most of its orders in China, as relations with China and Chinese banks will allow IRSL to place favourable orders at Chinese shipyards.