Iran goes big with massive orders

Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, are poised to win contracts worth almost $1bn to build 10 oil tankers for Iran. National Iranian Oil Tanker Co (NITC) will award the contracts to South Korea-based shipbuilders Daewoo and Hyundai, and Hyundai?s Samho facilities within the next three weeks according to a NITC spokesman. The order will comprise of five Suezmax tankers and five VLCCs.

Daewoo and Hyundai are increasing their ties to Iran as the country prepares to more than double its fleet of vessels, the result of rising shipping costs and increasing demand. NITC plans to order another 35 vessels to be built by 2010, including 10 LNG carriers.

Both Korean shipbuilders now have a strong possibility of winning future orders in Iran, especially to build LNG vessels, which provide higher profit margins. The Iranian tanker company plans to order

Iran?s other national shipping company, the Islamic Republic of Iran Shipping Lines (IRISL), is also planning to expand its fleet of 115 vessels and to start ordering LNG tankers. The company plans to add 54 vessels by 2012, for a total of $2.5bn at current market prices.