Economy, Business And Markets

$500m Foreign Funds for IRISL Fleet Renewal

$500m Foreign Funds for IRISL Fleet Renewal
$500m Foreign Funds for IRISL Fleet Renewal

Foreign funds worth $500 million for purchasing ships by the Islamic Republic of Iran Shipping Lines have been finalized, the chief executive of the state-run entity announced.

“The total value of the finance deal is about $700 million while about $500 million of the required funds will be provided through South Korean banks,” Mohammad Saeedi also told Tasnim News Agency.

The funds will be spent to purchase 10 ships, he added.

These resources, all of which will be provided by foreign banks, are to be utilized for expanding the Iranian shipping fleet after the nuclear deal created an opening after years of sanctions.

Some of the sanctions directly targeted IRISL, which was also the first shipping line to be targeted by international sanctions with British and US officials claiming the company’s ships carried cargo that supported the country’s ballistic missile and nuclear program.  

As Saeedi noted, Iran has managed to take good measures for developing maritime transportation and reviving IRISL’s presence in the international market.

In early July, director of IRISL’s Insurance Brokerage announced that 77 Iranian ships are receiving protection and indemnity coverage from Steamship Mutual Underwriting Association Limited.

That is while the country has managed to become a member of three P&I clubs, namely “the [Oslo-based Assuranceforeningen] Skuld, West of England and Steamship Mutual,” Mohammad Reza Banaei had also said at the time.

According to Saeedi, IRISL is currently engaged in business with three notable shipping lines, without naming them.

“In light of the current condition of competitive global markets, we are striving to implement our plan to develop the national fleet,” he said.

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