Hyundai Glovis has won a KRW508 billion (USD500 million) contract of affreightment with Qatar Primary Materials Company.
Hyundai Glovis, the shipping arm of Hyundai Motor Group, told IHS Maritime that the contract requires it to ship 50 million tonnes of aggregates from the United Arab Emirates and Oman to Qatar from January 2016 to 31 December 2020.
The company will deploy 72,000dwt Panamax bulkers to service the contract.
“This contract demonstrates the company’s competitiveness in the Middle East market while strengthening our partnerships with cargo owners,” Hyundai Glovis CEO Kim Kyung-bae said.
Qatar Primary Materials Company (QPMC), a building materials firm founded in 2006 on the instruction of the Qatari government, is creating a strategic stockpile of aggregates for the government in Mesaieed. It has been boosting the efficiency of port facilities used to import construction materials, primarily aggregates including limestone, gabbro, sand, and other free-flowing bulk construction materials.
Qatar is building massive stadiums ahead of the 2022 FIFA World Cup.
QPMC has finished upgrading Lusail Jetties Facilities, which is intended to meet the needs of large-scale construction projects in Qatar. The upgrades include the addition of another berth and two floating jetties that can each accommodate four barges.
The facility now can handle up to 1,000 tonnes of cargo per hour – double its previous rate – therefore reaching a discharge capacity of 3 million tonnes per year.
“QPMC continues to grow to create more projects aimed at ensuring the provision and availability of key building materials across various parts of Qatar, which is witnessing a boom in the implementation of major projects, particularly in the infrastructure and construction industry,” QPMC chairman Abdulaziz Al Ansari said.
“The creation of an extra berth at the Lusail facility was planned to increase its capacity in order to import gabbro and other construction materials used in the building and construction operations at Lusail City and the surrounding area.”