REPORT OF THE BOARD OF DIRECTORS
General Cargo Transportation Sector: The General Cargo sector is considered to be the oldest operating sector for NSCSA. It operates on a liner service between the eastern coast of the US and Canada to the Indian sub-continent passing through the ports of Italy, Jed- dah Islamic Port on the Red Sea, King Abdulaziz port in Dammam as well as Jebel Ali port in Dubai. The General cargo vessels transported approximately 1,257,282 tons of cargo during 2010, compared to 1,060,956 tons during 2009. There was an increase in the tonnage transported of approximately 19%; however, the transport rates for this sector were lower than expected and the transport rates are forecasted to increase during 2011. During 2010, the management of the company reached a decision based on its strategic plan to replace the four vessels which should be between 2012 and 2013 in which the four current vessels will end their service. The manage- ment study ensured the investments in this sector and the investments in building new modern vessels with lower operating cost percentage. NSCSA completed the vessel design during 2010 to be constructed and the company’s management are reviewing the proposed offers from ship building yards; the decision will be taken when a suitable offer is considered. The General Cargo transportation activity posted total operating losses in 2010 of SAR (40.11) million compared to an operating loss of SAR (48.11) million in 2009. This contributes to (9%) of the consolidated gross operating revenue in 2010.
General Cargo Fleet
Saudi Hofuf
Saudi Diriyah
Saudi Abha
Saudi Tabuk
The National Shipping Company of Saudi Arabia Annual Report 2010
23
Powered by FlippingBook