Qatar Shipping, a subsidiary of Qatar Navigation QSC (Milaha), has secured a ten-year ship financing loan worth $110m from QNB Group.
The company will use the proceeds from the loan to finance the 19 harbour assistance vessels that are currently being built.
Upon delivery the vessels will be deployed in Mesaieed Port under a 20-year, QAR1.8bn ($494.34m) contract, signed with Qatar Petroleum in 2011.
The finance was arranged by Milaha Capital, another Milaha subsidiary, which provides corporate finance advisory services to the group.
Milaha president and CEO Khalifa bin Ali Al-Hetmi said, "This is the second ship financing agreement signed this year as part of a series of financing arrangements the company has been planning for 2012."
Earlier this March, Milaha’s subsidiary Halul Offshore Services had won an eight-year $60m ship financing facility from Sumitomo Mitsui Banking (SMBC).
Proceeds from the loan were used by Halul to finance the expansion strategy aimed to improve the technical capabilities of its fleet and also expand the fleet size.
Qatar is building the New Doha Port in Mesaieed at a cost of QR27bn ($7.4bn), which will spread across an area of 26.5km and will have capacity to handle six million teus of containers.
In April 2012, Milaha started the implementation of a new terminal operating system (TOS) at Doha Port to replace a paper-based system to manage around 400,000teu container movements per year more efficiently.
The new TOS, which is slated to go live in the second quarter of this year, will allow Doha Port to support increasing container and general cargo volumes, and meet international standards for terminal operations.
Image: Qatar Shipping will use the proceeds from the loan to fund the 19 harbor assistance vessels that are being built. Photo: QNB