Qatar Shipping, a fully-owned subsidiary of leading shipping and logistics services provider Qatar Navigation, has won a QR1.875 billion ($521.82 million) contract from Qatar Petroleum.

Under the terms of the contract, Qatar Shipping will provide and operate harbour tugs, pilot boats and mooring gangs for Mesaieed Port for a period of 20 years from August 2014. Qatar Shipping will construct 19 boats in the coming three years to service this contract.

Qatar Shipping already operates harbour tugs, pilot boats and mooring gangs at Mesaieed Port and this operation is expected to continue until the commencement of the new contract, a statement said.

"This is an extremely gratifying award and is a validation of the quality of the services we provide currently," said K K Kothari, CEO of Qatar Shipping.

Khalifa bin Ali Al-Hetmi, president and CEO of Qatar Navigation, said: "We are pleased to be able to build on our longstanding, extensive relationship with Qatar Petroleum across a number of our business units."

Qatar Navigation made a net profit of QR418 million in H1 2011. The company is preparing to expand its presence in various sectors as part of a long-term strategy, said its chairman, Sheikh Ali bin Jassim Al Thani.