Qatar Shipping Company (Q Ship) is on the threshold of modernising its fleet with a contract signed with a South Korean firm for building three product/chemical tankers at a cost of $75 million.

Under the deal signed with Shina Shipbuilding Company, the vessels will be delivered in January, March and June of 2003. The 37,000dwt tankers will be double-hulled and powered by Man engines (B&W 6S60MC two-stroke diesel).

The deal was signed in 2000 at a time when the international shipping market witnessed a significant improvement in freight rates for crude oil and oil products. Q Ship made record profits of QR72.2 million that year. The company foresees stronger business potential in coming years, expecting industrialisation in Qatar to gather strength in the petrochemicals and other sectors.

The company is also awaiting the arrival of three standby/safety vessels being built by Sumec of China and which are to be delivered in 2002 as well as four anchor-handling tugs and supply vessels under construction at the ABG shipyard in India and due for delivery in 2002.

Earlier this year, four new tug boats, built by Bharati India, joined service at the Mesaieed port where the company provides harbour towage and pilot boat services. Also in service there are two pilot boats built by Halmatic of the UK, both of which were delivered in July of last year.

The harbour towage services are being provided as part of Q Ship's diversification policy. The company is servicing the contract at Mesaieed Port for Qatar Petroleum.

The Chinese-built vessels and Indian tugs are part of two 10-year contracts awarded by Qatar Petroleum (QP) to Haul Offshore Services Company, a 50:50 joint venture between Q Ship and QNNTC. The contracts, worth QR375 million, are for building and operating nine anchor-handling tugs and supply vessels and standby safety vessels.

Q Ship currently owns and operates a seven-vessel deep-sea fleet having an aggregate tonnage of 711,153dwt. They comprise four petroleum product (crude oil) tankers, one clean petroleum product tanker and two OBOs.

The company also operates two contracts of affreightment, one for the import of iron ore to Mesaieed for Qatar Steel Company and another for the delivery of Al Shaheen crude to Halul for QP. Last year its OBOs transported 514,971 tonnes of iron ore from Brazil and Norway to Mesaieed while its crude tankers carried 243,975 tonnes of Al Shaheen crude.

Q Ship earned QR13 million in 2000 by spot chartering two clean product tankers of 39,000dwt each. It undertakes chartering occasionally to meet its existing commitments and avail itself of business opportunities. As much as QR18 million was realised as profits from Qatar Mobil Tanker Company where Q Ship has a 50 per cent ownership in two recently built Aframax crude oil tankers - MT Ras Laffan and MT Valiant, 105,000dwt each Ñ through its joint venture with ExxonMobil. The vessels entered service in December 1999.

Q Ship reported that its vessels transported a total of 7.72 million tonnes of crude and fuel cargoes in 2000 including shuttling of the QP share of Al Shaheen crude to Halul of a total of 253,975 tonnes. Additionally 1.75 million tonnes of dry bulk cargo was transported in 2000 including hauling of 514,971 tonnes of iron ore pellets to Qatar Steel Company.

Q Ship has been awarded the ISO9000: 1994 certificate for quality management systems by Det Norske Veritas (DNV) Netherlands, one of the few shipping companies in the Middle East to receive such a certification.

"We have conducted a thorough review of our information systems and the related procedures. We have established and implemented a comprehensive policy on information security and our systems match those of the best in the industry," the company said.

"The upgrade systems have reduced our communications cost and enhanced productivity for each of our users. Our superintendents can access our in-house systems round the clock from anywhere on the globe."

The company's fleet is under the in-house technical and crew management of the company. Technical management functions include repairs and maintenance, purchase of spares, stores and provision with a limited number of professional and support staff comprising 36 management staff and another 123 on board vessels with a view to maintaining administrative expenses at minimum levels.