REPORT OF THE BOARD OF DIRECTORS
Mideast Ship Management recruited crew for the ships in accordance with the specifications of high efficiency and seeks to update and train the crew on all new plans and devices adopted and used by the company. The total number of crew members in charge of the vessels were approximately 827 employ- ees from 28 different nationalities. 750 of those employees are employed on board of the vessels and 77 are employed off shore in the Dubai office. These employees are a highly competent specialized team of captains, engineers and technicians with extensive experience in the technical and administrative aspects of the management and operations of the fleet. Mideast submits technical reports to NSCSA on the performance and status of ships, fuel consumption, results of periodic inspections and makes their recommendations in this regard. Mideast Ship Management also provides peri- odic financial reports on operating expenses and budgeting along with several other reports. In accordance with the strategic plan recommendations and considering the role of NSCSA in the Kingdom, current comprehensive development as the first national carrier in all segments (Crude Oil, Petrochemicals & General Cargo). As per the expansion strategy of the company’s activities in marine trans- portation, NSCSA signed an agreement with Arabian Agricultural Services Company (ARASCO) to establish a joint venture company for transporting dry bulk cargo with a capital of SAR 200 million out of which NSCSA owns 60% and 40% for ARASCO. NSCSA is primarily engaged in purchasing, chartering and operating the vessels for the transportation of dry cargo. The joint venture is expected to commence its operations in transportating dry bulk cargo during the year 2011 after the acquisition of the Panamax sized vessels in which each holds a capacity of 76,000 DWT. The size of the investment in the newly established company is estimated to be SAR 656 millions and shall be increased to reach around SAR 1.3 billion during the next three years. 30% of this project shall be financed by partners and 70% through shareiah compliance loans from local financial institutions. Let it be known that the Chairman of the Board of the Directors for the Na- tional Shipping Company of Saudi Arabia is also the Chairman of the Board of Directors of the Arabian Agriculture Service Company and owner. By signing this agreement and establishing this company, NSCSA adds to its activities the dry bulk cargo transportation. As a commitment from the company to serve all commercial sectors in gen- eral and the national obligations in particular, an extensive study was made to explore new opportunities to improve the General Cargo sector. In this regard, a feasibility study for replacement of the existing aged RO-RO ves- sels was made during May 2010 and a final design for the new vessels for this sector was completed in October 2010. NSCSA is currently studying the offers received from the shipyards and the project bid shall be awarded in due time.
Planning and Business Development
The National Shipping Company of Saudi Arabia Annual Report 2010
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