ETA-Ascon plans big expansion

The Dubai-based ETA-Ascon, a diversified group, plans to buy 76 new ships to expand the size of its fleet to 100 in five years. The total investment involved in this order will amount to $2.72 billion.

The company is negotiating with a number of shipbuilders to sign a number of major orders which includes four oil tankers placed with Japan’s Universal Shipbuilding. Other orders will range from Panamax to VLCCs and could lead to the biggest expansion of the group whose annual turnover rose to $3 billion last year, from $2.5 billion in the previous year. The ambitious plan will make it the largest fleet owner in the Middle East. Currently United Arab Shipping Co (UASC), which is owned by the governments of the GCC countries and Iraq, operates the largest fleet in the region.

The shipping division of ETA-Ascon currently owns 16 vessels with eight on order and charters over 200 vessels every year, carrying more than 15 million tonnes of cargo.

The division has entered into a joint venture with Mitsui O.S.K. Lines (MOL) for operating VLCC vessels.