JEDDAH – The National Shipping Company of Saudi Arabia (Bahri) said Tuesday that its 80 percent-owned subsidiary company National Chemical Carriers Ltd. Co. decided Monday to cancel a shipbuilding contract for one chemical tanker (NCC Bader) due to the delay in delivery beyond the agreed date in the shipbuilding contract. According to the contract signed with ShinaSB Yard Co. Ltd. in 2007 and subsequent supplementary agreements signed during 2012, National Chemical Carriers is entitled to cancel the shipbuilding contract if the delay exceeds the period specified in the contract which also reserves the rights for the company to get refunded of total pre-delivery installments paid amounting to $41.6 million). The paid installments are guaranteed by The Export-Import Bank of Korea, including related compensation expected to reach ($7 million). NCC signed with ShinaSB Yard in 2006 and 2007 contracts to build 16 chemical tankers, in which 10 vessels were received by the company during the period from March 2011 to December 2012, while eight contracts have been cancelled. As a result of these cancellations, National Chemical Carriers has achieved nearly $97 million in financial discounts and compensations. — SG
