REPORT OF THE BOARD OF DIRECTORS
Strategy, Future Objectives & Projects
NSCSA has adopted a well-established and consistent strategy for growth and expansion in the Chemical and Dry Bulk sectors. This allowed the strengthening of core business and expansion into various other shipping activities. 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 in the global markets, which includes the expansion of its VLCC fleet over the past three years in which the vessels are now in operation. 16 new chemical carriers have also been ordered which are expect to be delivered by 2010-2011. In 2010, (7) tankers’ contracts were cancelled due to the delay of delivery by the ship builders. NSCSA recovered a compensation amounting to SAR 15.1 million. NSCSA repurchased the first (2) tankers that were cancelled, which saved a total amount of SAR 45 million compared to the orginal purchase price which will be delivered in the first half of 2011. The remaining tankers are expected to be delivered during 2011- 2013. NSCSA continued to make good progress in line with the strategy. The rationale is to broaden the scope of the business which has several diverse routes consisting of fleet growth, operational expansion,and administrative restructuring. • National Chemical Carrier / Odfjell LTD “NCC Odfjell Chemical Tankers JLT” (NOCT), which is located in Dubai UAE. It has commenced commercial operations in January 2010 with a pooled fleet of 15 (45,000 DWT IMO2) chemical tankers. • On July 4, 2010, National Chemical Carrier (NCC) signed a contract with Daewoo Shipbuilding and Marine Engineering Co. Ltd. (DSME) to build a specialized chemical tanker carrying a capacity of 75,000 DWT. It is expect to be delivered during the year 2013. • On August 28, 2010, NSCSA signed an agreement with Arabian Agricultural Services Company “ARASCO” to establish a joint venture company to transport dry-bulk cargo which was named “Bahri Dry Bulk”. New Projects Implemented:
The National Shipping Company of Saudi Arabia Annual Report 2010
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