Work on massive Saudi shipyard begins

April 2018

The construction work to build a major shipyard on Saudi Arabia’s eastern coast is under way with dredging and associated activities in progress, a partner in the venture has said.

In an update, the joint venture (JV) partner Lamprell said all conditions needed for the JV company, International Maritime Industries Company (IMI), to formally commence business have been completed.

An important condition was the entry by IMI into the loan agreement with the government lender, the Saudi Industrial Development Fund, it said.

The SIDF agreed in principle last year to provide SR3.75 billion ($1 billion) in financing for the project.

IMI is a partnership between the UAE-based Lamprell, state oil giant Saudi Aramco, National Shipping Company of Saudi Arabia (Bahri)  and South Korea’s Hyundai Heavy Industries Company.

The 4.3-sq-km shipyard will be located at Ras Al Khair and is expected to cost SR 20 billion ($5.3 billion).

An Aramco executive will be chief executive of the project. Lamprell’s anticipated total equity contribution over the construction period is up to $140 million, the statement said.

The nearly 12 million sq-m facility is planned to have an annual capacity to manufacture four offshore rigs and over 40 vessels, including three Very Large Crude Carriers (VLCCs), and service over 260 maritime products.

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