Saudi Arabia will build a giant shipyard

2016-12-01 09:00

Saudi Arabian Oil Company (Saudi Aramco) plans to team up with four companies to build a super-large shipbuilding and repair joint venture costing 20 billion riyals (US$5.33 billion) in Ras al-Khair on the eastern coast of Saudi Arabia. Upon operation, it may become the world's largest shipyard.

According to Reuters, Saudi Arabian Energy Minister Khalid al-Falih recently stated: 'The giant shipbuilding and repair joint venture will start construction in 2018 and begin production in 2022.' The Saudi Arabian government will fund the infrastructure for the shipbuilding and repair facility.

This shipbuilding and repair joint venture will be Saudi Aramco, National Shipping Company of Saudi Arabia (Saudi Bahri), South Korea Hyundai Heavy Industries ( ship machinery depot location ) and UAE's Lamprell, a joint venture of four companies. Upon operation, it may become the world's largest shipyard.

In January this year, the four aforementioned companies signed a memorandum of understanding to form a partnership. The newly established shipyard will provide for offshore drilling rigs ( vessels shipyard buying and selling ), merchant vessels, and offshore service vessels, providing engineering, manufacturing, and repair services.

It is understood that the first phase of this joint venture shipyard project will be completed in the next 2 years, and the shipyard will begin full operation in 2021. The joint venture shipyard will build large vessels for Saudi Arabia's oil industry. This new shipyard will help Saudi Arabia reduce US$12 billion in new shipbuilding import costs and boost local GDP by US$17 billion.

Ras al-Khair itself will become a major mining hub, where Saudi Arabian Mining Company (Ma’aden) has already built an aluminum processing joint venture and a phosphate plant.

This shipbuilding and repair joint venture is a key part of the economic reform plan announced by the Saudi Arabian government this year. Upon official operation, it will create direct and indirect employment opportunities for tens of thousands of people. In this plan, Saudi Aramco will play a major role in developing industrial projects. In addition to its reliance on oil exports, Saudi Arabia will seek to diversify its economy.

Hudong-Zhonghua has received orders for two 3,000-ton scientific research vessels.

CIMC Raffles to build the world's most advanced platform-dismantling semi-submersible vessel

COOKIES

Our website uses cookies and similar technologies to personalize the advertising shown to you and to help you get the best experience on our website. For more information, see our Privacy & Cookie Policy

COOKIES

required

These cookies are necessary for basic functions such as payment. Standard cookies cannot be turned off and do not store any of your information.

analyze

These cookies collect information, such as how many people are using our site or which pages are popular, to help us improve the customer experience. Turning these cookies off will mean we can't collect information to improve your experience.

Feature

These cookies enable the website to provide enhanced functionality and personalization. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

advertise

These cookies help us understand what you are interested in so that we can show you relevant advertising on other websites. Turning these cookies off will mean we are unable to show you any personalized advertising.

WeChat Official Account

Video account

Douyin account

Business License