The new offshore pier at Mina Ahmadi, which opened in February, is the largest and most advanced in the Middle East.

KUWAIT has a rich tradition of shipping. Long before the discovery of oil, Kuwaiti vessels were sailing the waters of the Arabian Gulf, the Red Sea, the East Coast of Africa, and India, trading in goods and carrying passengers.

The Kuwait Oil Tanker Company (KOTC) was founded in 1957, by a group of investors who foresaw how
important seaborne transportation would be for the development of the oil industry.

By the 1970s, oil export had become of such strategic importance to Kuwait that in 1976, the government decided to become a partner to KOTC, assuming a 49% share in the company and boosting its development.

Three years later, the government acquired full control, and when the Kuwait Petroleum Corporation (KPC) was established in January 1980, KOTC became its shipping arm. KOTC currently transports approximately 20% of KPC’s total oil exports.

Today, in line with KPC’s plans to increase production to four million barrels per day (bpd) by 2020, KOTC is making substantial investments renewing its fleet—one of the largest in the world, currently numbering 26 vessels. This is due to take place in two stages, the first of which will involve the construction of seven tankers.

Last August KOTC signed a $1.8 billion contract with Hyundai Heavy Industries of South Korea for the construction of four of the vessels: two crude oil tankers with a deadweight capacity of 317,000 tons and two large tankers for liquefied gas and ammonia with a capacity of 82,000 square meters. The first of the ships is due for delivery before the end of 2006.

All the new tankers will be double-hull vessels, providing twice the protection for both cargo and the environment.

KOTC plans to order nine new vessels in all, including two giant crude tankers. By 2008, it aims to have a modernized fleet of 29 tankers, with a deadweight capacity of 4.6 million tons, capable of transporting up to 30% of Kuwait’s oil exports.

Fully aware of its responsibilities as the face of Kuwait in international waters, KOTC is committed to maintaining its high standards and sound reputation. The company was awarded the world safety and quality certificates (ISM/ISO) in Novem-ber 1997.

“Our delivery operations are clean and non-polluting,” says Abdullah Al-Roumi, KOTC’s Chairman and Man-aging Director. “Providing reliability and high international standards is the best way of marketing your services to clients.”

KOTC follows all marine safety and security regulations, while improvements in equipment, procedures, cargo handling, discharging, and management of ballast waters have further reduced the chances of damaging or altering the marine environment.

“We have the highest standards in terms of our ships and our crews. Ninety-five percent of shipping incidents are due to human error, so you have to invest in training,” says Mr. Al-Roumi.

KOTC has an ongoing cadet training program, sending young Kuwaitis to colleges in Britain to study marine engineering and navigation, followed by further training on board tankers.

Mr. Al-Roumi elaborates: “Many of our young people go through rigorous training in various aspects of shipping and management to enhance their capabilities to take over future jobs awaiting them.”

KOTC is earmarked for privatization, but it is unlikely to take place soon. In 2004 the company made net profits of $60 million.

Mr. Al-Roumi emphasizes the cyclical nature of the business and the need to respond to changing circumstances. “We need the freedom to move with the market.” he concludes.