President of Latvia Valdis Zatlers participates at LASCO tanker newbuilding “Ainaži” launching ceremony

On September 5 in the afternoon there was held the name giving and launching
ceremony of the JSC “Latvijas kuģniecība” (Latvian Shipping Company - LASCO)
tanker newbuilding in “3.Maj” shipyard in Croatia. President of Latvia Valdis
Zatlers honoured the ceremony with his presence. 

It is expected that the new tanker will be delivered by the end of the year and
this will be the last of the ten tankers ordered at “3.Maj” shipyard. 

The tanker bears the name of the birthplace of Latvian navigation - Ainaži.
LASCO has invited Mrs. Iveta Erdmane, director of Ainaži Naval School Museum,
to become Godmother of the ship. Being professional and truly enthusiastic
person, she has contributed significantly in preserving Latvian navigation
traditions and history. 

It is an esteemed maritime tradition that a ship's Godmother is a woman of
honor and distinction, whose name will be linked with that vessel for the
vessel's entire life. It is her moral duty to acquaint the society with the
ship's crew and to encourage the enhancement of the crew's cultural and
intellectual background by maintaining contacts with its members both in person
and by correspondence. 

The name giving and launching ceremony of the tanker newbuilding was held
within the programme of President's of Latvia and entrepreneurs' delegation's
visit to Croatia targeted at strengthening economic cooperation between Latvia
and Croatia. Implementing the tanker renewal programme LASCO has developed
really successful cooperation with the Croatian  shipyard “3.Maj” and has
accomplished a massive investment programme: at the end of 2004 LASCO signed a
loan agreement with a syndicate of the leading European banks for the amount of
USD 360 million providing for financing 14 tanker newbuildings including the
ten ordered from the Croatian shipyard.  The bank loans represent about 70
percent of the total project value whereas the remaining 30 percent have been
financed from LASCO assets. 

The new double-hull ice class tankers are constructed in accordance with all
the European Union and international shipping safety conventions' requirements.
Their optimum parameters provide for their comprehensive employment in oil
product, chemical cargo and vegoil shipments. Expanding the large tanker fleet
renewal programme LASCO has secured basis for its competitiveness in the world
shipping markets for the next two - three years and in the distant future. At
the same time LASCO has been proceeding with the fulfillment of its strategic
goal set - ensuring increase of its value and securing its place among the top
ten medium range tanker owners in the world alongside with the leading position
in the Northern European market. 

LASCO launched its tanker fleet renewal programme in 2004 according to the
tanker fleet development scenario foreseen in the Group's operations' strategy
by signing agreements with Croatian  shipyard “3.Maj” for the construction of
ten tanker newbuildings. 

In selecting the “3.Maj” offer LASCO has considered both the good cooperation
experience with the shipbuilder in the past as well as the fact that ordering a
series of tankers from the same shipbuilder allows for economy in construction
process and their spare parts' costs in the future. 

Since July 2006 when the first tanker newbuilding “Ance” has been launched,
LASCO has taken delivery of 13 tankers by now - nine out of ten ordered at
“3.Maj” shipyard in Croatia and four from “Hyundai Mipo Dockyard Co., Ltd.” in
Korea. By the end of 2008 taking delivery of the tanker “Ainaži” LASCO's fleet
would be enlarged by 14 modern vessels concluding the significant tanker fleet
renewal project. 

In accordance with LASCO long term development plans foreseen in the Operations
Strategy for the period till 2015, at the end of 2007 additional agreements
have been signed with Korean shipyard “Hyundai Mipo Dockyard Co. Ltd” for
construction of four more medium range tanker newbuildings. 

  
Information: 

On September 5, 2008, the fleet in JSC “Latvijas kuģniecība” (Latvian Shipping
Company - LASCO) commercial management is comprised of 38 vessels - 35 tankers,
two LPG carriers and one dry cargo vessel. 
LASCO ranks among the ten largest shipowners in the world in medium range and
handy tanker segment alongside with being the leader in the Northern European
market. 



More detailed information:
Marita Ozolina-Tumanovska
Head of PR Department
Phone: +371 67020120, 29287169
E-mail : marita.ozolina@lscgroup.lv