Management Report
Strategy and Future Objectives
restructuring project of all its divisions and departments as well as those of its subsidiaries. Controls and governance systems have also been in place in line with generally accepted international practices and applicable regulations of the Kingdom of Saudi Arabia. In 2009, NSCSA incorporated NCC Odfjell, a limited liability company based in Dubai, owned equally between the National Chemical Carriers Company and Odfjell International Company. The newly- incorporated company will be a chemical tankers operator in the pool business between the two parties. NCC Odfjell commenced business early 2010. In mid-2009, a Memorandum of Understanding (MOU) was signed between the National Shipping Company of Saudi Arabia and the Arabian Agricultural Services Company (ARASCO), which is the largest dry bulk importer in the region in order to establish a Joint Venture limited liability company for shipping bulk cargo. The formation of the Joint Venture is in progress and expected to be incorporated during the first half of 2010.
At the end of 2008, the Board of Directors adopted NSCSA’s new five-year plan (2009–2013), which was prepared in coordination with an international consulting firm. The findings of this plan confirmed NSCSA’s sound financial and operational position and its competitive edge on the global markets, especially pursuing the expansion over the past three years of its VLCC fleet that has been delivered and put into operation. 16 new building chemical carriers are expected to be delivered during 2010-2012. The current strategy recommends continuing the main activities of the company, which are manifested in the transportation of crude oil, petrochemicals, general cargo and at the same time continue to monitor carefully the shipping industry in order to explore other investment activities in the field of maritime transport and ancillary services. NSCSA will continue to take up the opportunities available in a timely manner, after conducting the necessary studies to ensure the economic feasibility of prospective projects based on a number of factors, including fair return on investment, prospective growth of activity and the ability to participate in such projects in a manner that asserts the competitive edge of NSCSA. Recommendations of this plan also called for administrative and organizational restructuring of NSCSA to ensure the highest degree of operational, financial and administrative competence, to enhance the company’s capability in tackling potential global changes and optimal use of available resources. In this regard, NSCSA finalized the administrative
Annual Report 2009 The National Shipping Company of Saudi Arabia
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