TMS UAE Yearbook 2016/17

Volume 1, Issue 1 2016/17 UAEYEARBOOK2016/17

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Contents CONTENTS10 07 COMMENT 0808 09 09 There are exciting opportunities for growth in many different segments of the UAE’s maritime cluster17 10 17 GOVERNMENTAL STRATEGYTMS UAE Yearbook 2016/17 22 The Federal Transport Authority (FTA) is making progress on a number of different fronts THE DUBAI MARITIME CITY AUTHORITY The Dubai Maritime City Authority is a vital component of government strategy, encouraging the development of shipping and related activities CONTAINER PORTS Terminals in Dubai, Sharjah and Abu Dhabi have experienced relatively high levels of growth in recent years NON-CONTAINER PORTS The leading general and bulk cargo handling centres in the UAE are experiencing significant ongoing growth in traffic flows, triggering spending on new berths and equipment CRUISE PORTS Investment is boosting cruise passenger numbers in Abu Dhabi and Mina Rashid, while the ferry sector has been boosted by new services 1



Contents 25 SHIPOWNERS & OPERATORS Global changes in the container shipping business are presenting UASC with a series of challenges and opportunities While other sectors are going through a tough time, tanker operations are performing relatively well for UAE-based companies active in this segment3225 SHIPBUILDING The UAE is home to some of the busiest shiprepair and newbuilding yards in the Middle East 35 CLASSIFICATION Befitting its position as one of the world’s leading maritime centres, most of the world’s leading classification societies have a strong presence in the UAE, including market leading DNV GL32 The UAE’s own classification society, Tasneef, aims to become a market leader across the GCC region 38 OFFSHORE The UAE is home to a number of companies specialising in offshore services and, despite difficult market conditions, most report positive business trends 43 LEGAL Proposed updates to the Maritime Law are being welcomed by legal experts as likely to make it more attractive for38 shipping firms to do business in the UAE Fichte & Co is expanding its legal business in several different directions 49 MARITIME INDUSTRIES Steady growth for Islamic P&I Club McQuilling expands Dubai-based team DTA maintains leading position Clarksons Platou set for sustained period of growth43 49 Nasco Middle East holds its own Tel: +971 4 380 5556 Copyright © 2016 The Maritime Standard. Fax: +971 4 380 5509 All rights reserved. Email: info@themaritimestandard.com Although every effort has been made to ensureManaging Director & Publisher: that the information contained in thisTrevor Pereira publication is correct, the publishers accept noEditor: Clive Woodbridge liability for any inaccuracies that may occur.Manager-Marketing & Public Relations:Ammaar Murtaza Moosa Published under the licence of: Creative City No part of this publication may be reproduced,Design and Production: Nick Blaxill Fujairah Free Zone stored in a retrieval system or transmitted in anyPublished by: The Maritime Standard FZE Licence No.: 5568/2014 form or by any means without prior writtenPO Box 25980, Dubai, UAE. Printed by: Emirates Printing Press, Dubai permission of the copyright owner.TMS UAE Yearbook 2016/17 3



CommentExciting times ahead forthe UAE maritime sectorPictured above: Tristar, T here are significant opportunities for anyone transhipment port in the Middle East region. Over thewhich recently took delivery involved in the UAE maritime sector over the past three years Jebel Ali’s container capacity hasof Silver Manoora, the first next few years. The country’s leadership has increased by a third, from 14 million teu to 19 million teuof six new ships it has on identified shipping and maritime activities a year, mainly as a result of the Terminal 3 development.order in Korea, is one of the as an important area for the country’s future By 2018, this will rise again to over 22 million teu withrising names in the UAE economic growth and diversification, providing the completion of the first phase of Terminal 4. Thisshipping scene resilience to the economy in uncertain times and expansion is in line with the increase in the number of valuable employment for local people, as well as ‘mega ships’ arriving at the port and is also being driven expatriates. Organisations such as the Federal Transport by an anticipated growth in trade in the run-up to World Agency (FTA) and Dubai Maritime City Authority (DMCA) Expo 2020 in Dubai. are setting an exciting agenda for change, which shows that those in authority have a clear idea of where they Container port growth want to go and what they want to achieve. This includes the expansion of maritime training facilities, and also Abu Dhabi’s Khalifa Port has also expanded in leaps and upgrading legal and other service support structures, bounds, and is one of the fastest growing container that will allow other sectors to flourish. ports anywhere in the world right now. Further investment is on the way here, as it is at Khorfakkan The engine-room for UAE maritime development where Gulftainer is positioning itself to take advantage comes to a large extent from its ports, with Dubai’s Jebel of ongoing changes to consortia arrangements. It is not Ali being by some way the biggest gateway and just container ports that are benefiting from investmentTMS UAE Yearbook 2016/17 5



Commentin infrastructure and equipment, however. Fujairah, Ras having grown by acquisition and investment in new Above: Jebel Ali continuesAl Khaimah and Ajman are also witnessing higher levels ships, while a new era dawns for Gulf Navigation under to strengthen its position asof dry and liquid bulk movements as well as general new management. Tanker and bulk cargo owners, such the Middle East’s leadingcargo traffic. Passenger facilities, particularly cruise as Emarat Maritime, Gulf Energy Maritime (GEM) and container hubterminals in Dubai and Abu Dhabi, are increasingly busy ADNATCO-NGSCO, are also influential, not just regionallyas the UAE becomes a more attractive cruise destination. but on a wider platform. The UAE is home to some important shipping Shipyard services One of thecompanies in the container, tanker and offshore sources of theshipping markets. United Arab Shipping Company Shipyards in the UAE offer a diverse range of services, and UAE’s success(UASC) is close to completing one of the biggest capabilities, and are now well regarded worldwide. in theinvestment programmes ever by a Middle East-based Drydocks World Dubai and Abu Dhabi Ship Building maritimeshipping firm, but faces an uncertain future as a result of (ADSB) have both been busy, and will be working more business is theits recently confirmed merger with Hapag-Lloyd. Dubai- closely together in future to provide a stronger offering to fact that it hasbased Tristar is indeed a ‘rising star‘ within the business, many markets, including the offshore and naval sectors. encouraged Elsewhere, several smaller, but highly active, privately the growth of owned operations, such as Damen Shipyard Sharjah and a cluster of Grandweld, continue to carve out a significant niche for supports building and repairing specialised ships. services One of the sources of the UAE’s success in the Left: Mohammed Al maritime business is the fact that it has encouraged the Muallem, senior vice growth of a cluster of supports services. president and managing director, DP World UAE As readers will see in this publication, the country is Region the base for dynamic classification, insurance, shipbroking, agency, shiprecycling and technical services companies. There is tremendous synergy between these various strands, and with the encouragement of the UAE government, the existence of these complementary business elements will provide the basis for long-term growth for years to come. Clive Woodbridge, EditorTMS UAE Yearbook 2016/17 7

FTA The FTA-Land and Maritime division aims to sustain the recent increase in both ship numbers and capacity of the UAE registryHE Dr Abdullah SalemAlkatheeri director general ofthe FTA – Land & MaritimeFTA makes progress In particular, the committee will compare the UAE’son several fronts maritime laws with that of other countries.The Federal Transport Authority (FTA) – Land & HE Dr Abdullah Salem Al Katheeri, director generalMaritime is playing a key strategic and regulatory of the FTA – Land & Maritime, says: “The Maritime Lawrole enhancing the competitiveness of the UAE’s review is a top priority for us this year. The existing lawsmaritime transport sector are outdated as they have not changed since 1981.” The FTA-Land and Maritime division aims to sustain this recent increase in both ship numbers and capacity of the UAE registry. HE Dr Al Katheeri says: “We want to overcome any obstacles that exist to making the UAE flag more attractive to shipowners. For that reason it is time to change our laws and regulations to bring them into line with the best practices in the industry.”The Maritime Over the past year the FTA has achieved a number of important milestones within theLaw review is a maritime transport sector. It has, for example, established a Technical Council for Maritimetop priority for Transport which specialises in maritime matters within the UAE, covering both ports andus this year shipping fleets. Its brief is to take steps to improve this sector and establish effective dialogue with strategic – HE Dr Abdullah partners in the UAE. Salem Alkatheeri,FTA – Land & Maritime In another important initiative, the FTA has launched a review of the country’s Commercial Maritime Law, under the aegis of the Technical Council for Maritime Transport, which has established a dedicated review and update committee. This will study the latest version of the draft law and enter any amendments required to cope with developments and changes in the maritime sector.8 TMS UAE Yearbook 2016/17

Dubai Maritime City AuthorityDMCA spearheadsmaritime strategyThe Dubai Maritime City Authority is a vitalcomponent of government strategy, encouragingthe development of shipping and related activitiesThe Dubai In 2015, maritime activities accounted for We are striving to create a safeMaritime AED14.4 billion, or nearly 4.6%, of Dubai’s GDP, with and vibrant maritimeSector maritime operations, engineering, ports and environment in DubaiStrategy is shipping, maritime recreational services and variousreshaping the offshore activities all contributing significantly. The – Amer Ali, DMCAlocal maritime maritime industry is responsible for around 75,000 jobs,landscape with especially in operations and engineering, and ports, In addition, the DMCA is steadily establishing Dubai asits focus on which accounted for 51% and 25% respectively of a hub for maritime manpower development through theattaining the employment in this sector. Dubai Maritime Training Centre, and has recently raisedhighest levels Dubai’s stature though the setting up of the Emiratesof leadership, To further enhance this already impressive Maritime Arbitration Centre.customer achievement, the Dubai Maritime City Authority (DMCA)service, has introduced the Dubai Maritime Sector Strategy (MSS) Higher customer satisfactioninnovation, which aims to position Dubai so that it will rank amongsafety and the world’s seven biggest maritime centres by 2020. It is Mr Ali says:“We are striving to create a safe and vibranthuman capital currently in the Top Ten. According to Amer Ali, executive maritime environment in Dubai that will eventually bring director of DMCA:“MSS is currently reshaping the local higher customer satisfaction, enhanced cooperation with maritime landscape with its focus on attaining the all government and non-government parties involved in highest levels of leadership, customer service, innovation, the maritime industry, and more investment safety and human capital. It is already positively opportunities with high yield in the local maritime sector. impacting local GDP growth rate and is advancing the We are also here to ensure compliance with international DMCA’s key role in Dubai’s overall development.“ environmental and maritime standards and help create a safe and secure operation for all marine craft activities in As well as championing the MSS, DMCA is playing an the emirate’s territorial waters.” important role in other respects. It has, for instance, been instrumental in raising Dubai’s profile by organising One of the key aims of the DMCA is to continue to several international forums, such as Dubai Maritime create more job opportunities to boost the emirate’s GDP. Week, Dubai Maritime Summit and Dubai Maritime Mr Ali concludes:“We are particularly adept at providing Agenda. Moreover, it has made a valuable contribution excellent port and logistics services and will further towards advancing Dubai’s‘Smart City’vision.“We have reinforce our capabilities and resources in this area. We introduced our‘Smart Marine Services Platform’to will continue to work hard to develop all the components provide a number of advanced electronic services to the of the local maritime sector and the recruitment of those public, as well as an electronic information and with promise and potential will help accelerate the pace knowledge system called Dubai Maritime Intelligence to of transforming Dubai to one of the most advanced further drive the efficiency and competitiveness of maritime centres in the world.” Dubai’s maritime sector,”says Mr Ali. Key information The recently launched Dubai Maritime Intelligence platform aims at improving and broadening maritime knowledge. Mr Ali explains:“This platform falls under our Maritime Creativity Lab initiative and provides access to key information on craft maintenance, conversion and construction, the movement of commercial and leisure vessels, and maritime demographics, among others. This is an important initiative because it will significantly expand the maritime knowledge base, and advances Dubai’s‘Smart City’vision.”TMS UAE Yearbook 2016/17 9

Container portsContainer ports sustainpositive performanceTerminals in Dubai, Sharjah and Abu Dhabi have for 2014. Utilisation levels at the port remainedexperienced relatively high levels of growth in relatively high, at around 90%, despite a softening ofrecent years volumes in the fourth quarter of 2015. Market conditions generally in the second half of 2015 were Dubai’s Jebel Ali is the biggest container port “challenging”, DP World reports, with throughput in the Middle East, and one of the top ten growth stalling due to regional trade patterns. worldwide. Its dominant role as a gateway for local traffic, as well as a regional hub serving Healthy imports the Gulf and the Indian Subcontinent, is complemented by Khor Fakkan on the east coast, According to Mohammed Al Muallem, DP World senior which is a prominent container transhipment centre, as vice president and managing director, UAE region: “Our well as Khalifa port in Abu Dhabi. The latter has made UAE import business was healthy throughout the year, enormous strides since being opened three years ago but transhipment levels were weaker due to regional and is serving the fast growing local industrial market economic fluctuations. The low oil price did start to as well as consumers in Abu Dhabi. affect consumption across the GCC and that was reflected in volumes towards the end of last year.” Last year Jebel Ali handled around 15.6 million teu, up 2.3% compared with the 15.24 million teu recorded This slowdown has continued into the first quarter of 2016. Within the UAE, DP World handled 3.6 million teu between January and March, down 5.9% year-on-year. It10 TMS UAE Yearbook 2016/17

Container ports depth of 18 m, designed to accommodate the largest new-generation container vessels. Phase 1 of CT4 will add 3.1 million teu of capacity by 2018, taking Jebel Ali’s total annual container throughput capacity to 22.1 million teu. The port will be equipped with at least 110 cranes and will have a total quay length of around 11,000 m at that time. Phase 1 will feature 13 of the world’s largest modern quayside gantry cranes, which will be remotely operated from a control room located away from the quayside, as well as 35 Automated Rail Mounted Gantry (RMG) cranes, which will operate in the yard areas. DP World intends to further expand CT4’s capacity to a total of 7.8 million teu a year, in line with market demand, under a planned Phase 2. This will include an additional quay length of 1,000 m and associated yard areas that will be built by Dutco Balfour Beatty. This latest phase of expansion at Jebel Ali is needed, DP World believes, to ensure it continues to provide the capacity its customers require. “The economic fundamentals in the UAE are good,” says Mr Al Muallem. ”So this additional capacity will be vital to meet the requirements of the country, especially as we get closer to hosting the World Expo in 2020. The new terminal will be ready in time to meet the expected increase in trade over the next five years and to ensure Jebel Ali port reinforces its position as the top commercial gateway to this region.”attributes this dip to the loss of some lower-margin cargo, Jebel Ali port is handling Productivity improvementsas a result of a strategic decision to focus more on higher more large, newmargin traffic, as well as regional economic factors. As well as expanding physical capacity, DP World has generation container implemented an operational review to further improve DP World has a long-standing policy of building vessels than ever before efficiency. According to Mr Al Muallem: “We have seenahead of demand and is continuing to invest in port some significant improvements in productivity at Jebelinfrastructure and equipment at Jebel Ali. Further Work has Ali in recent years and we have to sustain that trend.”capacity will come on stream later in 2016, when the recently4 million capacity teu CT3 will be fully operational, started on DP World has also invested further in semi-giving Jebel Ali the capability to accommodate ten building Jebel automated cranes for CT3. Mr Al Muallem adds: “Thesemega containerships simultaneously and an overall Ali port’s new systems are safer and more accurate, and our aimcapacity of 19 million teu. CT4, which will going forward is to automate as much of our be constructed operations as possible. We will utilise similar systems at Work has recently also started on building Jebel Ali on a reclaimed CT4, but these will be even more effective as we willport’s new CT4, which will be constructed on a reclaimed island incorporate the lessons we have learned from ourisland. For Phase 1 of this project, Dutco Balfour Beatty experiences to date at CT3.”has been contracted to build a 1,200 m long quay andassociated yard areas, while BAM International Abu The Gulftainer-operated Khorfakkan ContainerDhabi will build a 400 m bridge and adjacent causeways, Terminal (KCT) is the second busiest container terminalas well as a 2.2 km quay wall with an alongside water in the UAE. While Gulftainer does not release specific figures for individual terminals, its two Sharjah terminals – KCT and Sharjah Container Terminal (SCT) – together handled around 4 million teu last year. This was around 9% higher than the year before, with both terminals outperforming most other container handling facilities in the Middle East. Further organic growth derived from the existing customer base has been evident in the first quarter of 2016, Gulftainer reports. KCT is a transhipment-orientated terminal with a small core group of long-term, major shipping line customers, including UASC and CMA CGM. Both of these operators are deploying some of their largest vessels on services calling at KCT. Earlier this year, forTMS UAE Yearbook 2016/17 11

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Container portsexample, Gulftainer celebrated the maiden call of phase of development, although there is inevitably Container volumes atUASC’s 15,000 teu capacity Linah, which was at that some uncertainty about future demand patterns at KCT, KCT last year were uppoint the largest vessel in the company’s fleet, to call at given the discussions that are taking place amongst by around 9%the UAE east coast port. leading shipping lines over future consortia arrangements. However Gulftainer believes it is in a There is no SCT, by contrast, has a much larger customer base, strong position to benefit from these changes. doubt thatcomprising more than 25 different lines, which Khalifa Portprimarily serve customers in the local Sharjah market. Mr Dalgaard says: ”There are both challenges and ContainerThese lines range from significant global operators, like opportunities as the lines play musical chairs. We are Terminal... isAPL and Maersk, to smaller regional operators, such as confident that we remain in a strong position as we try the fastestEthiopian Shipping Line. and get as close as we can to our customers and be growing of the nimble and flexible in meeting their needs.” UAE’s Flemming Dalgaard, Gulftainer chief executive containerofficer, says: ”The Sharjah market is strong as there are a Trucking business facilitieslot of infrastructure projects under way in the emirate.Sharjah is also home to a number of SMEs and SCT has As well as its container terminals in Sharjah, Gulftainer Left: Gulftainer is investinga niche serving these businesses, which generally find also has a thriving long-distance trucking business, heavily to upgrade Sharjahit is a lot easier to route cargo through our terminal Momentum Logistics, which currently has a fleet of Container Terminal with tworather than trucking via Abu Dhabi or Jebel Ali.” around 100 vehicles serving markets across the GCC, new cranes recently including Oman and Saudi Arabia, as well as the UAE. In installed hereGrowing throughput addition, Gulftainer continues to develop its Sharjah ICD business with two new warehouses being addedThroughput at SCT has grown steadily over the past recently to support customers there.few years and it is now close to capacity. In addition,shipping lines are putting larger ships into services Gulftainer, which celebrates its 40th anniversary incalling at the terminal, which is the oldest dedicated 2016, has an international portfolio, including terminalscontainer facility in the region, having started in Saudi Arabia, Iraq, Brazil and the United States. Lateroperations in 1976. As a result of this healthy demand, this year it will also open up a facility in the LebaneseGulftainer is now investing heavily to upgrade SCT. Two port of Tripoli, which could prove to be an importantship-to-shore container cranes, considerably larger gateway not just for the Lebanese market but for athan those they are replacing, are now operational. The wider hinterland as well.company has also extended and upgraded the yardareas. Mr Dalgaard says: “We are expanding both our There is no doubt that Khalifa Port Container Terminal,capacity and capabilities at SCT. As a result, we will in which is operated by Abu Dhabi Terminals (ADT), afuture be able to handle more volume, up to 500,000 subsidiary of Abu Dhabi Ports (ADP), is the fastestteu a year, as well as working these larger ships more growing of the UAE’s container facilities. In 2015, Khalifaquickly and efficiently.” port handled just over 1.5 million teu, a rise of 32% compared with 1.14 million teu in 2014. Ro-ro traffic at To support the newly delivered post-panamax Khalifa port also registered a rapid rate of increase, with aLiebherr ship-to-shore cranes, Gulftainer is buying more 27% increase against the previous year.rubber-tyred gantry (RTG) cranes for SCT. It is also takingsteps to expand the size of the container storage space The first quarter of 2016 has continued the port’sat the city centre port. track record of above-average traffic growth. Container throughput was up by 5%, to 317,000 teu, suggesting At KCT there are also investments being made in another record-breaking year is in prospect.upgrading facilities, including two new super-post-panamax cranes and additional rail-mounted gantry ADT passed an important milestone on 13 March,(RMG) cranes. Furthermore, the port authority is in the 2016, when it handled the 4 millionth teu since theprocess of building a new and expanded main gatefacility. Gulftainer points out that KCT is a strategic hub forthe region and its future is being kept under constantreview. Studies have been prepared detailing the nextTMS UAE Yearbook 2016/17 13

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Container ports Khalifa port in Abu Dhabi is one of the fastest growing container facilities worldwidetransition from Mina Zayed to Khalifa port in the third Our expansion stacking cranes. By the end of this year Khalifa port willquarter of 2012; a remarkable achievement in a short strategy is have an annual capacity of 2.5 million teu. In addition,timespan. The landmark container was loaded aboard demand driven ADP is planning to widen the access channels andthe AS Carelia operated by X-Press Feeders. turning circles to a better accommodate longer, latest- – Capt Mohamed Juma generation containerships, and will also extend the Martijn van de Linde, chief executive of Abu Dhabi Al Shamisi, ADP chief quay area at the port.Terminals, says: “Since we moved to Khalifa port in 2012 executivewe have achieved three consecutive years of double- Capt Mohamed Juma Al Shamisi, ADP chief executive,digit growth rates. This has led us to become the says:“Our expansion strategy is demand driven. We areworld’s second fastest growing port.” making heavy investments in upgrading infrastructure, implementing new technologies and buying newRo-ro traffic equipment to expand operations and better serve our customers.”Over the first quarter of 2016 ro-ro traffic was also well up,again achieving a double-digit rate of growth, surging by This year ADT has added 50,000 tonnes of additionalover 30%. This illustrates the continued buoyancy of the warehouse space inside the container terminal tolocal Abu Dhabi market for cars and other vehicles. reinforce the growth of its logistics department and assist key customer Borouge. The company’s container Transhipment services for ro-ro cargo have recently equipment stock has been enhanced with thecommenced by ADP at Khalifa port, and there has been commissioning of more ro-ro trailers, goosenecks andfurther investment in vehicle storage, pre-delivery tractors, while the terminal gate process has beeninspection and other facilities to provide a redesigned to make it even easier for truckers to loadcomprehensive range of service to vehicle traders. and unload containers. “This improved process has already resulted in a 25% decrease in truck transaction The neighbouring Kizad industrial zone has been a time, thus significantly reducing transportation costs,”key influence on demand at Khalifa port’s container says Mr van der Linde.and ro-ro terminals. The pace of development at Kizadis gathering momentum and over 20 factories are A further important initiative that will benefit theexpected to open up in 2016/17, while four new port’s container business is the new Maqta Gatewaycustomers started the construction of facilities within port community system. This is expected to be fullythe zone during the first three months of 2016. operational by the end of 2016, and is claimed to be the first of its type in the region. The system offers To support local customers, further investment is shipping lines, shipping agents, customs agents,planned at the Khalifa Port Container Terminal, with terminal operators and other government agencies aADP bringing in new container handling equipment single point-of-access and real-time information acrossover the next two years. Three new super-post- a wide range of services.panamax ship-to-shore gantry cranes are on order fordelivery later in 2016, along with ten more automatedTMS UAE Yearbook 2016/17 15

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Non-container port operations Fujairah’s oil tanker berths have been extremely busy over the past few yearsCargo ports benefit from supplies, as well as becoming a key regional hub for oilinfrastructure investment trading activity. In addition, the UAE east coast port is a primary gateway for exports of rock aggregate to meetThe leading general and bulk cargo handling the demands of construction projects in Qatar andcentres in the UAE are experiencing significant other Gulf countries.ongoing growth in traffic flows, triggering spendingon new berths and equipment Trade data from 2015 underlines the continued dynamism of the port’s performance in all theseAjman port, below, has The UAE has three of the region’s largest sectors. Last year, a total of 13,734 vessels called at thegone from strength to container ports, in Jebel Ali in Dubai, Sharjah’s Fujairah Offshore Anchorage Area (FOOA), the majoritystrength since becoming Khor Fakkan and Abu Dhabi’s Khalifa port. The to take on bunker fuel, ships’ supplies or to make crewpart of the Hutchison Ports country is, however, also home to some of the changes. While this was slightly down on the 14,015Holdings group most important bulk and general cargo vessels recorded in 2014, it was still the second highest handling ports in the Middle East Gulf region, many of figure on record, a remarkable achievement given the which are performing exceptionally well at the present downturn in many sectors of the shipping industry. By time. way of comparison ten years ago, in 2005, only 6,101 vessels called at the FOOA. Over the past decade the Port of Fujairah has strengthened its position as one of the most important Aggregates business centres in the world for bunkering and maritime The port’s aggregates business is also relatively buoyant, with 19.65 million tonnes moved across the Fujairah bulk terminal quays, mainly by its two loader cranes, last year. This represents a slight dip compared with the record- breaking 20.27 million tonnes recorded the year before. However, aggregates export volumes in 2015 were similarly the second highest ever achieved by Fujairah, easily surpassing the previous next best of 17.6 million tonnes handled in 2012. The star performer for Fujairah in 2015, though, was its gas oil business. Last year the port moved 77.05 million tonnes of oil and oil products, up from 60.09 million tonnes in 2014, a leap of more than 28%. This increase is being driven largely by ongoing private sector investment in oil storage tank facilities within the Fujairah port zone. By the end of 2016 Fujairah willTMS UAE Yearbook 2016/17 17

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Non-container port operationshave around 9 million cu m of tank storage, which will having to pass through the Straits of Hormuz. This has A computer-generatedrise further to 15 million cu m by the end of 2018. This had significant knock-on benefits for Fujairah port, image showing the newcompares with the tank storage capacity of just over both in terms of port calls and visits to the anchorage. supply boat harbour under4 million cu m that was operational at the end of 2012. development at Fujairah Looking to the future, Fujairah seems likely to To meet the demands of its shipping and trading receive a further boost from the development of the Fujairah seemscustomers, Fujairah has invested consistently in port 200,000 barrels per day capacity Fujairah Refinery, likely to receive arelated infrastructure and continues to do so. In the 1980s which is expected to be operational in 2018. There are further boostFujairah had just 370 m of berth. At the end of 2015 there also plans by Emirates LNG to develop a regasification from thewere 6,160 m of operational quays in the port, following facility in Fujairah. This will import LNG from the development ofthe commissioning of Oil Berths 8 and 9 in 2015, which international market to produce natural gas, which will the 200,000added a further 930 m of berth space for tankers. Work is be used primarily for local power generation projects. barrels per daynearing completion on a new VLCC berth, with a 27 m capacity Fujairahdraught alongside, which is due to be operational later Saqr port Refinery,this year, strengthening Fujairah’s position as a crude oil which is expectedand oil products hub still further. Another primarily non-container, multipurpose port that to be operational is performing well is Saqr port in Ras Al Khaimah (RAK). in 2018 Other investments either recently completed by the During 2015 the port handled 51.97 million tonnes ofport authority, or at the building stage include the cargo, up 4.7% from 49.6 million tonnes the year before.Northern Oil Terminal breakwater, two smaller bunker Saqr port handles a wide variety of cargo types, primarilybarge berths and the creation of a new anchorage importing and exporting raw materials and generalsupply boat harbour. This will add to the potential for cargo. The main export commodity handled at Saqr portgrowth at the FOOA, together with the additional is limestone and rock aggregate from various quarriesanchorage positions being created to the south of the within the UAE, and this business accounts for aroundarea, through the moving of undersea 87% of all outbound port traffic. The main importtelecommunication cables. commodity is coal, used mainly for cement factories all over the UAE, which accounted for over 40% of inboundPrivate investment movements last year. The port is heavily export orientated, with shipments outbound from the UAEPrivate sector investment is also important in enhancing accounting for around 90.5% of throughput in 2015, andinfrastructure at the port. In addition to the growth of imports just 9.5%.private oil storage facilities, Fujairah will benefit from thedevelopment of a new grain terminal facility by Al Dahra Saqr port is equipped with the a total of 16 modernand Louis Mills, which is expected to move to full mobile harbour cranes, which can lift up to 65 tonnesoperation later this year. Initially this is expected to in grab mode and 125 tonnes under the hook forgenerate around 200,000 tonnes a year of port traffic, general cargo. The port has recently acquired two newrising to 1.8 million tonnes in future. mobile harbour cranes to sustain high levels of productivity. The Liebherr LHM550 mobile harbour Recent years have also seen the completion of the cranes, shipped from Rostock, Germany, wereADCOP pipeline which allows Abu Dhabi’s ADNOC oil delivered this February, each having a 124-tonnecompany to export through Fujairah without vesselsTMS UAE Yearbook 2016/17 19

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Non-container port operationslifting capacity under the hook at an 11m radius. Zayed port, the oldest commercial port and the main New mobile harbour cranes Last year Saqr port handled around 1,770 vessels, city port for the past four decades, aims to become the were used to handle the premier regional hub for the cruise industry as well as AOM Elena in Februarymost of which loaded between 40,000 to 60,000 tonnes for general and bulk cargo. It is complemented by 2016, which shipped theof limestone or aggregates, with port stays of 24 to 40 Musaffah port, the second oldest port in Abu Dhabi, largest single exporthours. The port has recently worked its largest ever which also provides cargo operations and warehousing. contingent moved throughexport shipment, on the bulk carrier AOM Elena, which A new channel, nearly twice as deep as the previous Saqr portleft the port with 90,000 tonnes of limestone bound for channel, provides unlimited air draught and two-waya client in Qatar. movement for large commercial vessels. As Saqr port is operating nearly Saqr port at present has 12 berths, as well as a single In 2012, Hutchison Ajman International Terminals at capacity, theberth that facilitates the operations of the RAK Rock (HAJT) took over the management of Ajman port, decision hasconveyor. The Saqr Port Authority (SPA) anticipates located on the coast of the Arabian Gulf, and since then been taken tohandling 55 million tonnes through these berths in the port has raised its regional profile, taking push ahead with2016, which would be not far from maximum capacity. advantage of its favourable geographic location. The the expansion of port is 25 km from Dubai and 10 km from Sharjah, the port During 2016 the SPA will begin work on a new where most of the UAE’s manufacturing and tradingdeepwater berth with a draught alongside of 18 m. This companies are situated. As a result it serves markets Left: Abu Dhabi’s Zayed portinvestment will allow the port to handle Capesize across the UAE, as well as locally. The port is benefiting is now heavily focused onvessels and will meet growing demand for quarried from the infrastructure developments that are making bulk, general cargo, projectproducts from RAK, which are used in a number of Ajman one of the faster growing emirates. and cruiseship businessmarkets worldwide, including large scale infrastructureprojects across the Middle East area. Improved efficiencyPort expansion Following the transfer of industry best practices by port company Hutchison Port Holdings, HAJT has improvedCaptain Cliff Brand, RAK Ports general manager, says: ”As operational efficiency through the effective allocation ofSaqr port is operating nearly at capacity, the decision has resources and the introduction of new equipment,been taken to push ahead with the expansion of the port. including reachstackers, forklifts and rubber-tyred gantryIn addition, further investment in heavy plant and cranes (RTGs). This February HAJT reached an importantequipment will also be made, taking the overall project milestone by receiving three brand new hybrid RTGs.value to more than AED300 million. The new berth HAJT has also introduced a computerised Terminalshould be completed in 18 months and will increase the Operation System (TOS) which provides real-timeport’s annual capacity by a further 10 million tonnes.” information to maintain smooth terminal operations. Abu Dhabi’s Zayed port is now heavily focused on Ajman port offers a variety of services, includingbulk, general cargo, project and cruiseship business container handling and general cargo stevedoring. Itsince container and ro-ro traffic was transferred to also provides cargo consolidation and deconsolidation,Khalifa port. Last year general and bulk cargo large warehouse facilities covering an area of overmovements handled by the Abu Dhabi Ports increased 50,000 sq m, reefer facilities and bulk cargo services.by around 20%, while cruise tourism was up by 16%.During the first quarter of 2016, general and bulk cargo According to a spokesperson for HAJT: “Thesewas up by a further 13% compared with the equivalent developments have placed Ajman port as a one-stop-months of 2015. The port is particularly strong in shop on the Arabian Gulf. We are committed tohandling oil and gas industry related traffic, as well as continued investment in infrastructure and logisticsfood cargoes. support to maximise Ajman’s capability to perform as an efficient port of call in the Middle East region.” The increased volume of general and bulk cargoreflects the high level of industrial and infrastructuredevelopment projects in the Emirate of Abu Dhabi.TMS UAE Yearbook 2016/17 21

Cruise and ferryInvestment to boostpassenger numbersThe opening of a brand new passenger terminal last 250,000 passengers through the terminal. Leadingyear in Abu Dhabi is expected to accelerate the operators with booked calls include MSC Cruises, Crystalemirate’s fast growing cruise business, while Dubai Cruises, Seaborne, Noble Caledonian and Aida. At leastis also pressing on with investment at Mina Rashid two ships, MSC Musica and Aida Bella, will be home- ported in Abu Dhabi for the season.Pictured is the newly A bu Dhabi Ports’ efforts to make Mina Zayedopened Mina Zayed Cruise a regional cruise hub appear to be paying The new terminal building offers many passenger-Terminal in Abu Dhabi which dividends. Last year the port handled over friendly facilities including tourist information servicesis attracting calls from a 170,000 passengers, 16% up on the year and a passport border control counter, as well asnumber of leading before. Based on port calls already seamless links to Etihad Airlines flights through check-inoperators scheduled by leading cruise operators, the expectation facilities on site. The eco-friendly building celebrates the is that a further 20% increase in passenger numbers UAE’s cultural heritage and pays tribute to its long will be recorded this year. maritime history. A particular eye-catcher is the building’s roof design which is a lattice-work, taking the UAE’s A striking new state-of-the-art cruise terminal was national tree, the Ghaf, as inspiration. Wooden beams opened at Mina Zayed in December 2015. Designed to inside the building take inspiration from the UAE’s enable Abu Dhabi Ports to serve the increasing number traditional dhow sailing vessels. of cruise liners and passengers visiting the Emirate, the flexible and environmentally friendly design of the facility Island beach resort makes this a standout project. Alongside the new terminal, a further boost to Abu Towards the end of last year, the terminal hosted Dhabi’s cruise fortunes will come from the launch of the three cruise vessels on the same day – Island Sky, owned Sir Bani Yas Island beach resort, which is being developed by Noble Caledonia, Hapag Lloyd’s Europa 2, and Seven by the government of Abu Dhabi. A 1.5 mile-long stretch Seas Voyager, owned by Regent Seven Seas Cruises. Such of land on the natural island just off the southwest coast multiple vessel calls are expected to become increasingly of Abu Dhabi has been transformed into a beach oasis common, the port says, making the investment in destination, exclusively for the use of MSC Cruises guests. additional cruise terminal infrastructure a necessity. MSC Fantasia, one of the company’s largest and newest ships, will serve the island starting December 2016 on Mina Zayed handled 113 cruise ships, carrying more cruises from both Abu Dhabi and Dubai. than 231,000 passengers, during the 2015/2016 season. This represents a 500% increase in the number of passengers MSC Cruises has been working on perfecting this and ships visiting Abu Dhabi since the first cruise season in destination, together with Abu Dhabi Ports, for over two 2006-2007. Further growth projections mean passenger years. The tropical beach oasis is on a smaller island numbers are likely to reach more than 300,000, on around connected to the main island by a wooden boardwalk that 130 cruiseship calls, by the 2019-2020 season. secures exclusive access to MSC Cruises guests to a beach holiday experience, with hundreds of palm trees, shaded For this coming season, 2016/17, the terminal already cabanas and over 2,000 sunbeds across 36,000 sq m of fine has 147 calls confirmed, which are likely to bring over golden beaches. The MSC Cruises beach oasis will also offer direct access to a nature reserve with a range of22 TMS UAE Yearbook 2016/17

Cruise and ferry Jalboot pioneers Abu Dhabi passenger ferry services Launched in October 2015, Abu Dhabi’s new Jalboot ferry – the emirate’s only private scheduled passenger service – has been warmly received and the operator is already planning fleet and network expansions before the end of 2016specially designed excursions that will allow guests to Jalboot Marine Network, a company The Jalbootexperience the beauty of the natural surroundings. These set up in 2013 as a subsidiary of high speedinclude a horse-riding tour, a safari-style nature drive Emirates Consortium, is already ferry, Althrough the reserve, as well as a Dhow tour around the making its mark as a provider of Danaisland in a traditional powered boat, giving guests the passenger shipping services in Abuopportunity to see giraffes, hyenas and cheetahs in their Dhabi. The company is currently In a move to avoid passengers havingnatural habitat. operating a catamaran type fast ferry, Al to queue, Jalboot offers the option to pay Dana, which operates a route taking in using a 24 x 7 call centre, sales kiosks and Finally, there are ongoing archaeological excavations Abu Dhabi Mall, Yas Marina, Fairmont Bab mobile card payments, and claims to betaking place on the island. So for guests who want to Al Bahr and Etihad Towers. The service is the first SME in the GCC to implement thediscover more about the history and the culture of the being used by residents as an alternative mobile Point of Sales system (mPOS)island, a dedicated tour to the ruins of an early Christian to road transport, while visitors are using technology powered by Etisalat andmonastery site from 6th century AD will be available. it to get a waterborne perspective of the NBAD. capital and its surrounds, and to reach Not to be outshone, Dubai – which is the region’s tourist destinations with ease. “The‘chip‘n pin’system is a secure andleading cruise hub – is aiming to reach a target of reliable means to buy tickets on the spot1 million cruise passengers a year by 2020, according to Rob Chinman, head of sales & with cash or card while the tickets areSultan Ahmed bin Sulayem, chairman and chief marketing, says:“The new venture has printed on the sales receipt and alsoexecutive officer of DP World and chairman of Ports, been positively received and we will add a emailed to the passengers. The crew haveCustoms and Free Zone Corporation. Expansion work is second vessel during 2016. We are also on-board scanners to verify tickets,currently taking place at its Mina Rashid cruise terminal looking to include additional stops within whether printed or presented on ato facilitate the growth. Abu Dhabi to capitalise on the power of smartphone screen,”explains Mr Chinman. having a genuine transport network.”Cruise growth Jalboot is the first passenger operator Al Dana, manufactured from GRP, and to receive a‘no objection’certificate (NOC)Cruise tourism in Dubai has been growing rapidly, rising with a capacity of 40 passengers and from the Abu Dhabi Department offrom seven cruise vessels carrying 5,626 passengers in crew, was built in Dubai to a design Transport and it believes there isthe 2001-2002 season to 134 ships and more than provided by an award-winning European tremendous scope for further growth, for500,000 passengers in the most recent season. The trend boatbuilder. The launch ferry is fully air- example by offering services to the newis set to continue in 2016-2017, with 155 cruise vessel conditioned and features leather, business Sir Bani Yas Island resort facility. A secondcalls and 650,000 passengers likely to be achieved. class-style seating. The design sister vessel to Al Dana is under incorporates fuel-efficient Volvo Penta construction, and is due for delivery “To ensure the facility reaches its optimal capacity engines, a high-speed jet propulsion before the end of 2016. Eventually theand to further facilitate passengers’access to the system, onboard waste storage and is company plans to build larger catamaranterminals, more berths are being allocated, existing MARPOL compliant. ferry types, with capacities up to 100terminals are being linked via a high-tech tubes system, passengers, as part of its nextand an additional terminal is being built,”says Mr bin Rob Chinman, development phase.Sulayem.“We are committed to investing in the head of salestransformation of Mina Rashid into the cruise and marketing Mr Chinman adds:“In a further phasedestination of choice for cruise liners.”The ongoing Mina at Jalboot of our expansion plans we intend to startRashid development project will strengthen Dubai’s to offer services outside of Abu Dhabi,position as a global city and the premier cruise hub in linking the emirate with Dubai and Qatarthe world, he adds. for example. Even further ahead, we may also look to offer passenger and freight Mina Rashid Cruise Terminal is spread across services on certain routes.”2 million sq m and is currently equipped to handleseven large cruise vessels, with up to 25,000passengers, at the same time. The newest facility, theHamdan bin Mohammed Cruise Terminal, wasinaugurated in 2014. It is the world’s largest single,covered cruise facility and is capable of handling14,000 cruise passengers a day.TMS UAE Yearbook 2016/17 23



Shipowners & operatorsPivotal yearahead for UASCGlobal changes in the container shipping business significant changes to global shipping line consortiaare presenting UASC with a series of challenges and arrangements. The newly announced Ocean Alliance willopportunities incorporate UASC’s current Ocean 3 partners, CMA CGM, which has just taken over Neptune Orient Lines (NOL), and China Shipping, which is merging with Cosco.Above: The 18,800 teu The next 12 months will be extremely important New consortiumAl Nefud, now operating on for United Arab Shipping Company (UASC),the Asia-Europe trade lane which has its main operational headquarters in Another new consortium, THE Alliance, is planned to Dubai. The shipping line has recently concluded include Mitsui O.S.K (MOL), Nippon Yusen Kaisha (NYK), merger talks with Hapag-Lloyd of Germany and “K”Line, Hanjin, Hapag-Lloyd and Yang Ming. These six will also this year complete one of the biggest investment lines have agreed to create a new alliance covering all the programmes ever carried out by a Middle East-based East-West trade lanes, in a five-year deal. It is anticipated shipping company. that UASC and possibly HMM will eventually become part of THE Alliance. On June 29 this year, UASC shareholders voted to approve the proposed merger, with 72% of the value of This new consortium will create one of the leading the combined business going to Hapag-Lloyd and 28% networks in the container shipping industry with around to UASC. Some legal and administrative tasks need to be an 18% share of global container fleet capacity. This will completed before a binding agreement can be reached increase to above 20% if UASC’s participation is and regulatory approvals also have to be obtained. While confirmed. A statement from the carriers promises this process is under way both companies will continue enhanced port coverage in the Middle East, as well as to operate separately as at present, and will remain in very attractive transit times for all shippers in the East- their current alliances until the end of March 2017. West trade lanes. The recently concluded negotiations between UASC A deal between UASC and Hapag-Lloyd would seem and Hapag-Lloyd are only one of several examples of to have advantages for both partners. From a strategic further consolidation within the container shipping perspective, UASC would have access to an extensive industry, either through merger and acquisition activity or network operated by long established operators, which have strengths in various key markets in Europe, Asia, andTHE Alliance consortium will increase its share of global container fleet capacity toabove 20% if UASC’s participation is confirmed.TMS UAE Yearbook 2016/17 25



Shipowners & operatorsthe Americas. Its prospective partners would benefit from them at the right price and at the optimum specification UASC has invested heavily inthe fact that UASC would bring to the table a young, for our trades.” new reefer containersmodern fleet of large capacity and environmentallysuperior vessels, as well as a strong presence in the Bunker prices have been relatively low for most of the UASC has beenMiddle Eastern container trades. past year, and so the benefits of the fuel efficiency of the investing new vessels have yet to be fully appreciated. Mr Hinge heavily in UASC is in the midst of a US$2.36 billion fleet adds:“I am very happy with these ships, which have refrigeratedinvestment programme that totals 17 ships for delivery delivered a constantly good performance since they were containers,between November 2014 and the end of 2016. This delivered. The lower bunker prices has meant the gap taking incomprises eleven 15,000 teu vessels and six 18,800 teu between these new ships and older tonnage has been less 5,500 newclass ships, all of which are extremely environmentally than anticipated, but they will give us an important reefers withfriendly. To date, UASC has taken delivery of all six 18,800 competitive edge as the bunker prices move higher again.” Daikinteu class vessels – Barzan, Al Muraykh, Al Nefud, Al equipmentZubara, Al Dahna and Tihama – and eight 15,000 teu class New ships last yearships – Sajir, Al Murabba, Salahuddin, Linah, Al Nasriyah,Al Dhail, Al Mashrab, and Al Jasrah. The remaining three As well as investing in these new ships, UASC took15,000 teu ships will be handed over in the coming delivery of 5,500 new reefer units with Daikin equipmentmonths. The 15,000 teu and 18,800 teu vessels were last year. These are primarily intended to providesome of the first in the world to receive an Energy increased capacity on routes from South America to theEfficiency Certificate with documented Energy Efficiency United States East Coast. UASC has developed a strongDesign Index (EEDI), while the larger vessels are delivered presence in the South American market thanks to its‘LNG-ready’so that they can be converted to run on dual strategic partnership with Hamburg Sud. To support thisfuel when the time is right. business, UASC has recently set up a joint venture agency in Uruguay and is planning for further growth in Brazil as Last year was a challenging trading year for UASC, as it well as Argentina.was for the majority of container shipping lines. As JornHinge, president and chief executive, reflects:“In 2015 we In terms of new shipping services, the past 12 monthssaw freight rates fall on all trades, with negative market have been relatively quiet, as the priority has been togrowth on the core Asia-Europe sector. This, combined incorporate the new vessels being delivered and adaptwith the number of new vessels delivered, led to a existing operations to the chronic overcapacity situation.widespread overcapacity issues.” However, in recent months, UASC has started several new services. For example the IMEX service connects the A key highlight for UASC was the arrival of the new Indian Subcontinent, Arabian Gulf, Red Sea andships, which are starting to have a positive impact on Mediterranean and the MENA service links thebottom line performance. Mr Hinge says:“The ships are Mediterranean to the US East Coast. Slots have also beenbigger, delivering economies of scale, and are more fuel purchased on CMA CGM’s Indian Subcontinent – US Eastefficient. They are out-performing the already high Coast Service, connecting key ports in the Indianexpectations we had for them. The arrival of these ships subcontinent, the Mediterranean and the US East Coast,has come at the right time, and we were able to secure and capacity has been increased on the IEC 1 service connecting North, Central and South China and South Jorn Hinge, East Asia to North Europe. Last September, UASC UASC launched two new West Africa services (WAF 2 and president WAF3), enhancing schedule reliability and transit times to and chief meet the growing demand in this market. executiveTMS UAE Yearbook 2016/17 27

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Shipowners & operators class oil products tankers. The bulk carrier fleet includes five super Handymax ships, a Handymax and an Ultramax carrier. All of these trade worldwide. Capt Jitendra Misra, managing director, says:“Our tanker fleet enjoyed a very good 2015, a trend which has continued into this year. However, for bulk carriers last year was the worst ever. We do not expect to see a significant improvement in 2016.” The reason, he explains, is a combination of too many ships and a slowdown in many dry bulk trades.“There is limited cargo growth and a surplus of bulk carriers,”adds Capt Misra.“The fallout is being felt across the shipping industry and it is going to be a difficult market for some time yet for the bulk shipping business.” There are some more positive trends, however. Capt Misra points out:“This year we have seen very high scrapping so far and if the freight market continues to remain under pressure, vessels will continue to be sold for demolition and we will probably have a record year in terms of tonnage scrapped. Coupled with the slippage and cancellations of newbuilding orders, we just might see a healthier dry bulk market by the end of this year or early 2017.”Tankers give owners Waiting gamecause for optimism The company is currently evaluating its policy towardsWhile other sectors are going through a tough time, the dry bulk sector.“We are keeping our options open fortanker operations are performing relatively well for now,”says Capt Misra.“At the appropriate time we willUAE-based companies active in this segment have to make a decision. Whilst asset prices are probably at their lowest, the freight market still remains underAbove: One of Emarat’ One of the leading operators of tankers and pressure, making buying or selling bulk carriers a losingMaritime’s bulk carriers, the bulk carriers based in the UAE, Emarat proposition. We are therefore taking a wait-and-see55,000 dwt Dubai Galactic Maritime, is cautiously optimistic about the approach for now and at the right time we will make our future of the liquid bulk side of its operations move. But we need to see a bit more stability in the at least. market first.” Established in 1990 and part of the diversified Sharaf Group, Emarat Maritime has refocused its fleet in recent In the tanker market, Emarat Maritime is enjoying times to concentrate more on the tanker shipping more success with good volumes of business and healthy market. Having sold a number of older bulkers, the freight rates, and Capt Misra is optimistic that the company currently has a fleet of 13 vessels, including six company’s performance in this sector in 2016 will be as tankers and seven bulk carriers. good as in 2015 at least.“There is an element of uncertainty caused by volatility in oil prices and the effect The tanker fleet is relatively young, with all vessels of Iran re-entering the market. But based on the first few having been constructed between 2009 and 2011, and months of 2016, it looks as if the year will remain positive includes four Aframax-class crude oil tankers and two LR2 for our tanker business,”he says. Also focusing on the tanker market is the UAE-based logistics group, Tristar, which is growing both by acquisition and investment in new tonnage. In recent months, Tristar has agreed to acquire Abu Dhabi-based Emirates Ship Investment Company, also known as Eships, from Egon Oldendorff of Germany for US$90 million. Under the terms of the deal, Tristar will acquire a fleet of seven oceangoing tankers, which includes two LPG carriers under long-term time charter to an oil major, and five chemical tankers. Tristar says these vessels will be phased into its existing fleet and then fixed out long term in line with company policy. “This acquisition is a perfect fit for our longer-term plans to diversify revenue and make shipowning an integral part of our strategy to build a fully integratedTMS UAE Yearbook 2016/17 29



Shipowners & operatorsliquid logistics business,”says Eugene Mayne, group chief Gulf Navigation has, furthermore, this year set up a Tristar has acquired theexecutive of Tristar. Technical Services and Workshop division. This will offer Eships fleet of vessels shiprepair, maintenance and technical services out of In May this year Tristar also took delivery of the first new facilities in Khor Fakkan. The Gulf Navigation boardtwo, out of a total of six, 50,000 dwt clean petroleum has recently appointed HEproduct tankers on order from Korean shipyard Hyundai Gulf Navigation currently owns and operates a fleet of Khamis Juma Buamim asMipo Dockyard. These are being built at a cost of eight chemical tankers and four crew boats. The managing director andUS$200 million. The acquisition of Eships and the company started operations in 2003 and remains the first group chief executivenewbuilding programme, combined with Tristar’s existing and only publicly listed maritime and shipping companycoastal fleet, will bring the group’s owned shipping fleet in the UAE. The company is headquartered in Dubai, UAE,to more than 20 vessels. As a result, Tristar is poised to with a branch office in the Kingdom of Saudi Arabia.become one of the leading players in the UAE shippingbusiness, as well as a significant logistics services provider, Other leading tanker owners based in the UAE includebased on the group’s interests in surface transport, ADNATCO-NGSCO and Gulf Energy Maritime (GEM). Aspecialised warehousing and fuel services. subsidiary of ADNOC, ADNATCO-NGSCO has a total fleet of 27 ships, including eight LNG tankers, six cruiseFinancial restructuring oil/product tankers, and seven bulk carriers. In addition, the company has two chemical tankers, a molten sulphurAnother Dubai-based venture, Gulf Navigation, has been carrier, an LNG carrier and two container feederships.through some tough times of late, and has had to Formed in 2004, GEM manages a modern fleet ofrestructure its finances; but it now believes the worst is double-hull tankers designed to carry petroleumbehind it and opportunities for expansion and growth products, chemicals and other hydrocarbons. The currentexist. The Gulf Navigation board has recently appointed fleet of 19 ships comprises eight LR1, two LR2 and nineformer Drydocks World chairman HE Khamis Juma chemical/product tankers.Buamim as managing director and group chief executive,and has outlined plans to grow its fleet of product andchemical tankers and reinforce its shipping servicesbusiness. In addition to the proposed acquisition of newtonnage, Gulf Navigation will execute a number of newprojects and activities to boost turnover and profitgrowth over the next five years. This includes developingoffshore support services within the Arabian Gulf and Gulfof Oman, purchasing work boats for offshore projects, andbuilding a global shipmanagement network under theGulf Stolt Ship Management (GSSM) umbrella. GulfNavigation has recently acquired 100% of GSSM, which waspreviously a 50/50 joint venture with Stolt Nielsen. This willbe used as a vehicle to develop an in-houseshipmanagement arm and ensure that assets are managedand maintained to the highest industry standards.TMS UAE Yearbook 2016/17 31

ShipyardsShipyards build up areputation for qualityThe UAE is home to some of the busiest shiprepair commissioning and load-out of the Borwin 3 HVDCand newbuilding yards in the Middle East, and converter platform for Petrofac, TenneT and Siemens. Thethese facilities are steadily raising their profile not Borwin 3 link will transmit approximately 900 MW ofjust locally but on an international stage as well wind power to mainland Germany.The efficient Dubai’s Drydocks World is the biggest yard Drydocks World has, furthermore, been awarded acompletion of within the UAE, spread over 200 hectares, with contract from Kvaerner to carry out the fabrication ofwork on four large drydocks and over 3,700 m of berth components on the Johan Sverdrup Riser Platform JacketBeynouna space. While its primary focus is on shiprepair for Statoil, which will be located in the Norwegian sector ofreflects the and conversion, the company has successfully the North Sea. Drydocks World is carrying out thefocused diversified into shipbuilding and offshore fabrication- fabrication of pile clusters and floatation tanks according toattention and related work as well in recent years. Furthermore, with stringent NORSOK safety and quality standards. The entireexcellent over 145 rig projects completed, it is also highly structure will weigh over 7000 tonnes when completed.project team experienced in rig repair, maintenance and refurbishment.support Growth area During 2015, Drydocks World achieved an increase in – Laksmi Janarthanan, the number of ships serviced in its Dubai yard, Rig-related work has been a growth area for the yard in Drydocks World completing work on a total of 277 vessels. The majority of recent years and another notable milestone was reached these vessels were tankers, including ULCCs and VLCCs, when the company completed its first Rig Integrity while bulk carriers, containerships and general cargo Assurance Program (RIAP) on the rig Diyina for the vessels were also docked. National Drilling Company (NDC). Drydocks World has now completed a total of 17 projects for NDC. For One of the biggest projects completed by the yard, another of the company’s rigs, Beynouna, Drydocks however, was offshore-related with the construction of the World’s rig services team turned around a major repair world’s largest turret mooring system for SBM Offshore, ahead of schedule in 28 days. Mr Janarthanan states:“The Technip and Shell. Drydocks World has to date delivered efficient completion of work on Beynouna reflects the five modules for the Shell FLNG turret mooring system and focused attention and excellent project team support the fact that over 5 million lost time incident (LTI) free man allocated towards this vessel in order to reach the hours were completed on the latest turret project is a milestone date agreed with NDC.” testament to the excellent safety record that the organisation maintains. According to Laksmi Janarthanan, The Drydocks World Dubai workforce on average commercial director:“This project confirms that we are a completes over 300 projects of varying types a year, and leader in turret fabrication, and strengthens the company’s in 2015 set a record of handling 42 refurbishment projects position as one of the few worldwide specialists capable of simultaneously. The company has also built a number of delivering such large-scale projects.” vessels for various owners, and is currently working on an innovative LNG-fuelled tug, together with Wartsila, that is Drydocks World is also working on the fabrication, expected to be deployed within the Drydocks.The NDC rig Beynouna As well as the main yard, a subsidiary, called Drydocksleaving the yard in 2015 World Marine Services provides docking, repair and conversion services for vessels up to 130 m in length inside Dubai Maritime City (DMC). Equipment available at DMC includes two synchrolifts of 6,000 tonnes and 3,000 tonnes capacity, along with 42 dry berths and approximately 2 km of wet berths. In early 2016, Drydocks World Dubai and Abu Dhabi Ship Building (ADSB) entered into an agreement to work together on maritime projects, with the aim of better optimising the resources of the two leading shipyards in the United Arab Emirates. The memorandum of understanding between the two companies is expected to pave the way for the creation of a stronger industrial entity,32 TMS UAE Yearbook 2016/17

Shipyards Drydocks World Dubai was very busy last year, at one point handling a record of more than 40 vessels at a time eight landing craft and high-speed protection vessels. These will feature state-of-the-art equipment, technology and advanced protection capabilities to ensure they are able to carry out required tasks efficiently and accurately. One of the newest yards in the UAE is Damen Shipyard Sharjah (DSS). Established in January 2014, the company recently celebrated its second anniversary. Within the space of those two years, the yard has established a position for itself as one of the region’s leading builders of tugs and one of the busiest Middle East repair yards for small and medium-sized vessels.better able to handle large-scale maritime projects in the DSS celebrated its second Tug deliveriesUAE and across the GCC region. Precise details of the anniversary in January thiscooperation have not been revealed, but the agreement is year with 13 ships in dock One of the yard’s main areas of business is the delivery ofexpected to facilitate the transfer of knowledge and for repairs and a number of Damen-designed tugs, with eight vessels of this typecapabilities between the two firms, to mutual benefit, and new vessels under completed in 2015 and more on order for 2016-17to establish the basis for longer term future cooperation construction completion. A particularly notable recent delivery was thebetween the two state-controlled enterprises. 68.5 tonnes bollard pull ASD 2411 Al Luolo Aya, which was It was the first delivered to Sharjah Port Authority for deployment at Khor ADSB is 40% owned by Abu Dhabi’s strategic time we have Fakkan port. Willem Moelker, head of sales and marketing,investment company Mubadala and 10% by the delivered a tug Damen Shipyard Sharjah, says:“This was an importantgovernment of Abu Dhabi, with the remaining 50% that was made landmark as it was the first time we have delivered a tugpublicly traded on the Abu Dhabi stock exchange. It in Sharjah for that was made in Sharjah for a Sharjah customer.”achieved net income of Dh96.2 million for the first nine a Sharjahmonths of last year compared with a Dh53 million loss in customer The total DSS newbuilding orderbook is now 18the same period of 2014, largely as a result of growth in vessels, with deliveries stretching into 2017. As well as all-its naval ship building business. Dr Khaled Al Mazrouei, – Willem Moelker, steel tugs, the yard is also building a number of aluminiumchief executive officer of ADSB, says the agreement will Damen Shipyard fast crewboats to Damen’s proven SeaAxe design.open new horizons for establishing cooperation between Sharjahthe two companies, and will support the national Newbuilding work makes up around 40% of theeconomy in terms of developing the maritime services business at DSS, with the balance comprising repair andsector. conversion work. During 2015, a total of 165 vessels were docked at the yard for repairs and upgrades, the majority Abu Dhabi Ship Building (ADSB) is now working on a of which were tugs and OSVs.significant new contract from the Kuwait Ministry ofDefence, signed in January this year, to build and supply DSS, a joint venture between Damen Shipyards Group and Albwardy Marine Engineering, is located in the Sharjah Hamriyah Free Zone in the United Arab Emirates (UAE). Occupying a 284,000 sq m site, the yard has 1,200 m of quay wall, with draughts between 5 m and 9 m alongside, and is equipped with a 5,200-tonne shiplift, eight dry berths, a fully enclosed blasting andTMS UAE Yearbook 2016/17 33



Shipyardspainting facility, 4,500 sq m of newbuild construction three 34.3 m aluminium crew boats to Jana Marine The Grandweld shipyard issheds and 7,500 sq m of workshops for the various trades Services, a 50 m Dive Maintenance & Support Vessel to located within Dubaiactive on the site. Abu Dhabi National Oil Company (ADNOC), and the 42 m Maritime City crew boats Stanford Volga and Stanford Niger, which are Based in DMC, Grandweld is another yard with a capable of carrying 83 people at speeds of 25 knots.strong shipbuilding and repair business. Last year thecompany consolidated its position as a leading builder of “It is an exciting time for the business and ourvessels for the offshore segment, completing the customers,”concludes Mr Abki.“As the offshore marketconstruction of a total of 17 vessels over the course of moves towards more optimised, complex vessels, our2015. Projects included advanced crew boats, dive knowledge and experience allow us to respond withmaintenance and support vessels, and work crane boats. advanced newbuildings that deliver added performance and competitiveness for our clients.” Grandweld, which has been operating from its Dubaibase since 1984, specialises in vessels custom-built toconduct complex operations in the region’s challengingoffshore environment. These range from three recentlydelivered work crane boats for Kuwait Oil Company,optimised for duties such as heavy lifting, oil-pollutioncontrol, SPM hose handling and taking supplies to remoteareas, to two modified 4 m long crew boats, FNSA-3 andFNSA-4, for Fujairah National Shipping Agency. The lattervessels are capable of speeds in excess of 30 knots andhave been customised to execute operations such assecurity duties, fast transportation of offshore personaland cargo, and the rapid supply of fuel and freshwater. “The Middle East is a unique environment, withunique challenges and opportunities,”states Jamal Abki,general manager Grandweld Shipyards. Other noteworthy deliveries in recent months include 

 




























 













WET, DRY & CHEMICAL BROKERAGE
SPECIAL PROJECTS
MARINE & ENERGY FINANCIAL SOLUTIONS
OPERATIONAL SUPPORT
RESEARCH & CONSULTANCY
FREIGHT FORWARD AGREEMENTS
SALE & PURCHASE
FREIGHT FORWARD AGREEMENTS 

 
New York
Singapore
Athens
Caracas
Dubai
Houston
Lima
Mexico City
Mumbai
New Delhi
Rio de JaneiroTMS UAE Yearbook 2016/17 35

ClassMerger puts DNV GL number of ships under class. This is one of the strongestin a class of its own growth regions in the world right now for DNV GL and good results have been achieved.”Befitting its position as one of the world’s leadingmaritime centres, most of the world’s leading Notable successes for DNV GL include itsclassification societies have a strong presence in the involvement in various newbuilding projects,UAE, including market leading DNV GL supporting owners in enhancing vessel performance through optimising hull forms using state-of-the-artThis is one of T he amalgamation of Det Norske Veritas CFD technology. Recent newbuilding wins include athe strongest (DNV) and Germanischer Lloyd (GL) has series of nine anchor handling tug supply (AHTS) shipsgrowth regions created a classification society with for ESNAAD, as well as two subsea vessels and a largein the world enhanced capabilities across the Middle series of module carriers for Topaz.right now for East. The merged DNV GL organisation hasDNV GL 10 offices in the Middle East region, staffed by around Prospects for future newbuilding opportunities are 500 people, around half of whom are based in the UAE. rated highly. ”We are in negotiations with Middle East – Ralph Becker, These cover a wide range of maritime, and oil and gas- interests regarding a number of projects. We hope these DNV GL related activities, as well as business assurance will come to fruition in the near future,” says Mr Becker. functions. New services Merger success One of the reasons for the growth in business is DNV Ralph Becker, manager for business development in the GL’s drive to become a highly customer-centric Middle East for DNV GL’s maritime division, says: “The classification society. This is reflected in a number of merger has gone very well locally and over the past year new services, including Direct Access to Technical or so business in the Middle East has grown Expertise (DATE), which is now available to clients in the significantly, both in terms of gross tonnage and the Middle East and Indian Subcontinent. This allows DNV GL to respond quickly to technical questions by using technical expertise centres located around the world, allowing owners to get swift answers to any class- related issues on a 24/7 basis. Mr Becker also draws attention to the new MyDNVGL portal, which allows owners to access in-depth information about their entire fleet, prepare surveys and order services online. The merger of DNV and GL has additionally createdAgreement helps Tasneef achieve strategic objectivesTasneef chief executive, Established in 2012 as theRashed al Hebsi UAE’s own classification society, Tasneef aims to become a market leader across the GCC region As part of its strategy to increase local market share, Tasneef, the first certified Arab classification society, has entered into an agreement with Abu Dhabi Ship Building (ADSB) to develop naval construction and related services in the UAE. The memorandum of understanding (MoU), signed in May 2016, includes classification and technical consultation services as well as the issuing of classification certificates for systems, employees, products and naval fleet safety. Collaboration between the two companies36 TMS UAE Yearbook 2016/17

ClassRalph Becker, manager opportunities to launch new service capabilities locallyfor business to meet specific owner needs. As an example, DNV GLdevelopment in the introduced a new Jack-up Service Centre in the MiddleMiddle East for DNV East in 2015, based in Dubai. “We can now handle planGL’s maritime division approval for jack-up rigs locally and provide owners with highly sophisticated technical advisory services,” Mr Becker points out. “This has been huge success and we now have eight staff engaged in this section and plan to expand further.” The DNV GL Maritime Advisory business has also been in high demand in the last two years and has grown significantly. With the addition of experts for hull and machinery issues, a full range of services can be provided locally. Dubai is now the base for one of the four Condition Assessment Programme and Life Extension centres worldwide in the DNV GL organisation, demonstrating the importance of this kind of business in the region. “We are now of a size where we can have a greater amount of expertise stationed locally,” says Mr Becker. “This makes a big difference in the support for our local client base. We are getting very positive feedback about this.” A key element of the merged company’s strategy is to become a ‘data smart’ company. Mr Becker says: “We believe in digitalisation and connectivity, and for example see cyber security as a big topic that could require class involvement in the future. We are harnessing new technology, for example using drones for survey work, and prepare ourselves as well as our clients for future requirements.”will also be evident in technical areas to compared with ships built and operated in local skills base and 50% of its employeesincrease safety, security, environmental oceans and areas with colder climates. are UAE nationals. The classification societypractices and naval policy development. has taken the initiative through various Moreover, Tasneef is the accredited body training and educational programmes and Rashed Al Hebsi, chief executive officer, for the GCC Code, which is the result of has within the past year celebratedTasneef, says:“Signing this memorandum is intensive cooperation between the National qualification of the first Emirati classin line with the Tasneef’s strategy to Transport Authority (NTA) and Tasneef, and surveyor according to IACS standards. Instrengthen collaboration with different was implemented from 1 September 2014. addition, the Tasneef Academy, theofficial authorities, specifically those that are Designed to raise safety standards for the academic arm of the classification society,specialised in the naval industry. This local maritime industry, the GCC Code is being was launched in late 2015 and hascontributes to the UAE’s role as an used by Tasneef as the basis for surveying up developed a number of specialised maritimeinternational and regional hub for to 1,600 ships operating in UAE waters. training courses, in various vocational areas,navigation and naval services and targeting the maritime sector.infrastructure development.” Tasneef has also developed the UAE Yacht Code, the first of its kind in the world, PotentialNew standards specialising in“super yachts”that are longer than 24 m. The code, launched in 2015, Capt Waleed Al Nahdi, director of TasneefWithin a relatively short period of time, enables the UAE government to register Academy, says:“This region needs a largeTasneef has successfully implemented new these types of yachts under the country’s flag number of experts and professionals instandards of quality control with regards to and issue a special registration certificate. strategic areas, including navigation andbuilding vessels and making them marine services, as well as qualityoperational, fulfilling the needs of the Arab Mr Al Hebsi, adds:“The UAE Yacht Code management. This academy will enable usworld and its unique temperatures. One of puts Tasneef among the leading to help exploit the economic potential of theits primary achievements is the so-called classification agencies in the world in terms Arab region based on its strategicSahara Standard for ship specifications that of legislation and laws governing large-size geographical location and its naturaloperate in hot climates, saving 15% of private yachts. This contributes to bridging resources.”operating and fabrication costs when the gap in global legislation in this regard.” Tasneef is committed to developing theTMS UAE Yearbook 2016/17 37

OffshoreOffshore businesscontinues to thriveThe UAE is home to a number of companiesspecialising in offshore services and, despitedifficult market conditions, most report positivebusiness trendsRight: Stanford Marine’s One of the strategic aims of the UAE authoritiescrewboat Stanford Volga, is to make the country a hub for offshorewhich was handed over by shipping and related activities. There are aUAE shipyard Grandweld in number of companies based in Dubai and Abu2015 Dhabi that are focusing on this segment and most have expansion plans. afloat repairs throughout Europe, the Middle East and One of these is Seaborne International, which is Indian Subcontinent. recognised as one of the leading maritime and offshore service providers and system integrators in the region Originally set up in 2006, in France, as a representative focused on offshore shipping. Services provided by the of a handful of European manufacturers, Seaborne company include marine and offshore engineering subsequently expanded overseas, with its Dubai-based consultancy, project management, planning and subsidiary being established in 2013.“We are a relatively scheduling, onboard inspection, yard selection and young company in the UAE, but we have a lot of contract negotiation. Seaborne International also offers accumulated experience,“ says Snehansu Mahapatra, head of Gulf and India.“Our aim at Seaborne38 TMS UAE Yearbook 2016/17

Offshore The PSV ESNAAD 221, delivered in 2015International is to provide a one-stop-shop for marine Malaysian shipbuilder Berjaya Dockyard. The vessel was We can helpand offshore requirements and to ensure our customers’ acquired as part of a contract with an oil major in a key shipownerstechnical and commercial requirements are met.” Gulf market and is currently in Dubai being prepared for make the right deployment. Also over the first quarter of 2016, the decisions by Mr Mahapatra believes that Seaborne is offering a new company took delivery of the Topaz Resolve, a looking beyondconcept to the region, one that focuses more on multipurpose support vessel. just priceintegrating different technologies to optimum effect, thanon price. He adds:“We can help shipowners make the Fleet expansion – Snehansu Mahapatra,right decisions by looking beyond just price. As a result of Seaborne Internationalthis approach, we currently have projects in a number of René Kofod-Olsen, chief executive officer, Topaz Energyyards in the Middle East and India, both providing and Marine, says:“Over the last 12 months we havetechnology and supporting the design process.” expanded our fleet to take advantage of market conditions, focusing on acquisitions that are in line with Seaborne aims to bring something different to the our strategy of operating a modern and high-spec fleet,market.“I don’t think we can be compared with anyone the benefits of which will strengthen us as our clientselse operating in the UAE at the moment,”says Mr place increasing emphasis on safety, operational uptimeMahapatra. ”We can offer shipowners benefits by and efficiency. The quality and youth of our fleetcoordinating different technologies and concepts, positions Topaz favourably against the higher averageintegrating them in a smooth and streamlined way to the age of the worldwide OSV fleet.”benefit of end users and yards.” Headquartered in Dubai with 40 years of experience Currently Seaborne International has a staff of around in the Middle East, Topaz operates a fleet that has an14 people in Dubai, and plans to expand further over the average age of seven years. The company is a subsidiarynext few years. It is also contemplating setting up a of Renaissance Services, a publicly traded company onfurther office in India to support its activities in this fast- the Muscat Securities Market, Oman.growing market. Mr Kofod-Olsen adds:“As expected, the first quarter of Topaz Energy and Marine, one of the region’s leading 2016 has proved challenging. While the oil price hasoffshore support vessel operators with a strong presence stabilised over the last few months, the market remainsin the UAE, has recently further expanded its fleet with very competitive. Our ability to secure long-termthe acquisition of a 60 tonnes bollard pull anchor contracts with reputable clients demonstrates ourhandling tug supply vessel, Mamlaka. The delivery takes commitment and belief in the long-term fundamentals ofthe total number of vessels in its fleet to 100, including our industry.”So far in 2016, Topaz has secured twothree newbuilds currently under construction. landmark contracts, signing long-term deals with BP for Mamlaka is a 61.8 m long, DP2 class vessel built byTMS UAE Yearbook 2016/17 39

VROOAM has a passion for the shipping industry: The open watersare our laboratory for developing technically superior heavy dutymarine lubricants. Thanks to our partners in shipping we can trulyunderstand the need of developing high quality marine lubricantsthat can extend oil intervals and reduce operation costs.We understand the marine industry, as we are from the Netherlands:Product performance, durability and cost e ciency is in our DNA.

Offshore14 vessels in Azerbaijan, and a US$350 million contract GMS’latest new vessel, GMS vessels, is technically advanced and amongst thewith TCO in Kazakhstan to construct, supply and operate Sharqi, was delivered in youngest in the industry, with an average age of seven15 vessels for a minimum of three years. early 2016 years. The SESVs are four-legged vessels and are self- propelled, which means they do not require tugs or Another offshore vessel operator based in Dubai is Over the last similar support vessels for moves between locations inStanford Marine. Established in 1997, the company 12 months we the field; this makes them significantly more cost-operates an extensive fleet of around 40 vessels, serving have expanded effective and time-efficient than conventional offshorethe oil and gas industry in the Middle East, South East our fleet to support vessels without self-propulsion. They have aAsia, Africa, India and the Gulf of Mexico. As well as its take advantage large deck space, crane capacity and accommodationheadquarters in Dubai, Stanford Marine also has offices in of market facilities that can be adapted to the requirements of theSingapore, Doha (Qatar), Abu Dhabi and support desks in conditions group’s clients.Saudi Arabia and Nigeria. – René Kofod-Olsen, Fleet categories Darren Reeves, general manager, says:“Over the last Topaz Energyfew years, Stanford Marine has cemented its reputation and Marine The fleet is categorised by size into Large Class vessels,of being a major player in our home territory of the operating in a water depth of up to 80 m, with craneMiddle East in the provision of marine vessels supporting capacity of up to 400 tonnes and accommodation for upthe oil and gas industry. We are fortunate enough to to 300 people, and Small Class vessels, operating in watercount the region’s major oil companies as our clients. In depth of up to 45 m, with crane capacity of up toaddition to our core business in the Middle East, our 45 tonnes and accommodation for up to 300 people. Ahorizons continue to broaden with vessels now operating new third class, the Mid-Size Class, capable of operatingsuccessfully in Mexico, Angola, Malaysia and Thailand.” in water depth up to 55 m, with crane capacity of up to 150 tonnes and accommodation for up to 300 people, Additions to the fleet in the past year have included was added to the fleet in 2015.two new crew boats built by sister company Grandweld.Stanford Volga and Stanford Niger were delivered in The latest new SESV, GMS Sharqi, was delivered at theAugust and September 2015 respectively. The two 42 m end of the first quarter of 2016. The Large Class vesselcrew boats have a speed of 25 knots and seating capacity GMS Evolution remains on schedule for delivery in theof 83 persons. Both vessels are committed to projects in last quarter of 2016, completing the newbuildAbu Dhabi. programme. There are no plans for further new ships at the moment. One of the biggest offshore vessel operators in theregion is ESNAAD, a subsidiary of the ADNOC group. The Fleet utilisation so far in 2016 has been around 93%.company currently operates a fleet of around 50 vessels Duncan Anderson, chief executive at GMS, says:“Theout of its base in Musaffah, Abu Dhabi. ESNAAD has an sustained low oil price continues to affect our industryongoing investment policy aimed at replacing older and our focus remains on maximising vessel utilisationvessels and increasing the overall size of the fleet to and maintaining our strong client relationships in thearound 70 vessels in the near future. MENA region and Europe, while managing our costs appropriately. Our clients are seeking to lower their overallNine-vessel order costs and we are confident we have the right business model in place to meet their needs, helping them carryThe company has in the past year placed a big contract out their operations as efficiently as possible using ourwith China’s Sinopacific Shipbuilding Group to build nine young and flexible fleet of sophisticated SESVs.”anchor handling tug supply (AHTS) vessels. Due fordelivery in 2017, the AHTS will have an electricpropulsion system and a bollard pull of 80 tonnes. Thebasic design of these vessels has been tailored toESNAAD’s specific requirements, including the ability tooperate in shallow water, high-salinity, high-temperatures and high-humidity in the Gulf. ESNAAD also has an order for 10 platform supportvessels (PSVS) with Dutch shipyard De Hoop. These aredue to be delivered between 2015 and 2017, with thefirst in the series, ESNAAD 22, entering service last July. Also based in Abu Dhabi is Gulf Marine Services(GMS), which has become the leading provider ofadvanced self-propelled, self-elevating support vessels(SESVs) in the world. Its fleet serves the oil, gas andrenewable energy industries from its offices in the UnitedArab Emirates, Saudi Arabia and the UK. GMS’current newbuild programme to increase itsfleet size by 66% to 15 vessels is almost complete, withthe final vessel scheduled for delivery at the end of 2016. The group’s SESV fleet, which currently comprises 14TMS UAE Yearbook 2016/17 41



LawLegal eagles soar highProposed updates to the Maritime Law are being Work is well under way on this review of the Maritimewelcomed by legal experts as likely to make it more Law. It is hoped that preliminary recommendations willattractive for shipping firms to do business in the UAE be published in the second half of 2016, before consultations take place with the wider shipping sector in the UAE. Maritime law has become an increasingly The initiative has been warmly welcomed by other important, and active part, of the cluster of local maritime law firms. Rania Tadros, managing partner shipping related businesses in the UAE. In of Ince & Co, says:“As a big-picture exercise this is a very Dubai, in particular, a number of specialist positive step forward and should help clarify a number of law firms have expanded their presence matters. However, a law is only as good as it is applied, and significantly over the past few years, while the so there is a need to step up training for judges as well.” government itself is taking steps to strengthen the legal Initiative framework as part of its over-arching maritime strategy. One law firm, Baker & Mckenzie Habib Al Mulla, has Another important initiative by governmental authorities been instructed by the UAE government, through the is the recent launch of the Emirates Maritime Arbitration Federal Transport Authority (FTA), to review, Centre (EMAC), which has a mandate to review and settle amend and update the current UAE maritime disputes quickly and efficiently. EMAC has Federal Law No. 26 of 1981 relating to been established at the direction of His Highness, maritime activity – better known as Sheikh Mohammed bin Rashid Al Maktoum, the the Maritime Law. The firm is Ruler of Dubai, as a specialised arbitration centre working with the FTA, other to assist those operating in the maritime relevant government authorities, industry and to assure investors of an effective industry experts and academics means of dispute resolution. specialising in maritime law, as well Both the EMAC and Dubai International as consulting with all parties in the Financial Centre (DIFC) courts now have judges UAE maritime industry. with a maritime background, bringing industry Standards insights into the settlement of disputes. Tarek Saad welcomes this Tarek Saad, counsel at development. He Baker & McKenzie suggests:“Together with Habib Al Mulla, the review of theThe aim is to says:“The aim is to Maritime Law, the bring the Maritime setting up of EMAC willbring the Law and its improve the industry’s associated performance and competitivenessMaritime Law... regulations in linein line with with global and help make theglobal standards and UAE become one consolidate Dubai’s of the world’sstandards and position as a leading maritimeconsolidate regional and hubs.” international In anDubai’s maritime hub. Our importantposition as a UAE team is milestone, board working closely with members have beenregional and Baker & McKenzie’s appointed to EMAC, withinternational maritime experts well known arbitrator across the world, Sir Anthony Colmanmaritime hub including teams in named as chairman Singapore, the UK, and Majid Obaid bin – Tarek Saad, Germany and Justice Sir Anthony David Colman will Bashir as viceBaker & McKenzie Australia, on this chair the new EMAC arbitration centre chairman. The project.” board also includes Habib Al MullaTMS UAE Yearbook 2016/17 43

LawThe Stephenson a high level group of government, maritime, legal and law services with a base in Dubai and over the past yearHarwood team business figures, including Ahmed Essa Al Falahi, Dr Ali the company has taken steps to significantly enhance its Obaid Al Yabhouni, Dr Chi-Sang Kim, Mohammed Al capabilities. Pavlo Samothrakis, who specialises in theWe have taken Muallem, Capt Mohamed Juma Al Shamsi, Mohammed shipping, international trade and offshore energy sectors,modern space Saeed Al Kindi, Saadi Abdul Rahim Al Rais, Saeed Al has recently been promoted to partner. This follows thein a strategic Malek, Capt Jitendra Misra, Richard Briggs, Edward similar elevation of Mohamed El Hawawy and Khalidlocation to Newitt, Christopher Mills and Essam Bella. Hamed in October and May 2015, respectively. Bothfacilitate Mohamed and Khalid, like Pavlo, specialise in thefurther Welcoming the start of the EMAC service, HE Sultan shipping and offshore sectors.expansion over Bin Sulayem, chairman of the Dubai Ports, Customs andthe next few Free Zone Corporation and president of Dubai Maritime Expanding teamyears City Authority (DMCA), describes it as a development that is of“special importance”as an initiative for the settlement Ince & Co’s Dubai office, which celebrated its 10th – Rovine of disputes according to arbitration mechanisms and anniversary this year, now has a team of 15 lawyers who Chandrasekera, independent legal frameworks and regulatory controls. specialise in shipping. The aim is to further boost this Stephenson Harwood He said:“EMAC is a key part of an overall strategy that number to around 20 by the end of this year. Rania Tadros aims to place the UAE at the forefront of the world’s adds:“In recent times we have seen a shift from commercialRight: The courts at DIFC maritime capitals by the year 2020.” work to litigation and arbitration, and we see opportunitiesnow have judges with a to grow in these areas. We have a good and well balancedmaritime background DMCA entrusted another local law firm, Al Tamimi & team with a broad spectrum of capabilities in the Company, with providing advice on setting up EMAC. The contentious and non-contentious side of shipping law.” scope of work included liaising with the DMCA’s arbitration department to draft the law and regulations The company has been busy over the past year, related to EMAC and submit the project, which involved a handling a wide variety of shipping-related cases, comprehensive study of all major international including a number involving the collapse of OW arbitration centres worldwide, for approval. Bunker for example, as well building close links with a number of local shipping companies. Rania Tadros Ince & Co is one of the leading providers of maritime says: “With the set-up of EMAC, we believe more work will be referred locally and we are preparing for that to happen by building up a very experienced and capable team in this region. Dubai is developing fast as a maritime law centre and this will open up more opportunities to expand and develop our capabilities.” Baker & McKenzie’s UAE-based maritime team has also been expanded recently, with the addition of Amir Alkhaja and Abdalla Eisa as associates in 2015. Amir is an expert in maritime law, and specialises in transactional shipping advice and marine causalities as well as in44 TMS UAE Yearbook 2016/17

Lawcontentious maritime claims before the UAE courts. In recent times we have seen a shift fromAbdalla focuses on shipping and insurance, advising on commercial work to litigation and arbitration, andboth contentious and transactional shipping matters, we see opportunities to grow in these areasand has experience in the Middle East handling civil,commercial and criminal cases. – Rania Tadros, Ince & Co A number of cases the company has been involved in maritime law firms in Dubai in that it is not purely Rania Tadros,over the last 12 months have set legal precedents in the shipping focused.“Shipping is the core, but we have managingUAE. For example, the company represented a leading corporate, financial, construction and other areas of partner atUAE trading company in relation to a US$10 million claim expertise as well. We are not one dimensional, and that is Ince & Coin a dispute over a joint venture agreement entered into a key strength in my view,”adds Mr Chandrasekera.with a major international conglomerate, to trade in oil.“Our firm set a precedent in the UAE by successfully Shipping accounts for over half of the business atobtaining a provisional attachment order to the present, but the company can offer a full range of3,000 tons of oil cargo on board the tanker owned by the services to clients. “Our strength is our diversity,” Mrconglomerate to cover the debt. This is the first ever case Chandrasekera says. “We have seen growth across allin the UAE where cargo has been attached in a situation areas of our business in Dubai and we will continue withwhere the owner of the vessel has no relationship with that strategy. Shipping will always be the heart of thethe parties,“ says Mr Saad. Stephenson Harwood practice in Dubai, but the rest of its organs will be strong as well. It makes for a more In another case, Baker McKenzie secured a healthy business model.”groundbreaking result for a carrier client in respect of aclaim for damages due to fire on a voyage. The UAE The company’s clients include manyFederal Supreme Court and the Dubai Court of Cassation leading shipowners, shipyards, major shipestablished that the outbreak of fire during a voyage finance banks and oil and gas companies.constituted a legal presumption in the carrier’s favour, Stephenson Harwood has recently acted for aexempting it from any liability for destruction or damage major UAE oil terminal in relation to aof the cargo. This ruling was upheld by the Abu Dhabi US$125 million multi-jurisdictional disputeCourt of Cassation. concerning the title to two cargoes of oil. Its team has also advised UAE owners on theGlobal capabilities purchase of four newbuild gas carriers from a leading Korean yard and advised UASC on“Our global capabilities, combined with our track record a loan facility used to part finance itsin the maritime industry, longstanding regulatory ongoing newbuilding programmeexpertise, and insights into the challenges facing the UAE comprising 12 containerships.maritime industry, all contributed to our instruction inthese notable matters,”says Mr Saad. While it has its Middle East base in Dubai, Stephenson Harwood is also Another company with a strong position in the building up a wider presencemaritime law sector, Stephenson Harwood, has recently across the region. The companymoved to new and much bigger offices in the DIFC, in has, for example, specialists activeline with its five-year plan. Rovine Chandrasekera, in Iran, Oman, Iraq and Qatar,managing partner, says:“We are now three years into our providing clients with a wide rangeoriginal plan, having got up and running in Dubai in of services and legal advice in these2013. We have taken modern space in a strategic location countries.to facilitate further expansion over the next few years.” Stephenson Harwood is different to many otherDatta leads Globe Express expansion During 2016, GES has been focusing on niche strengths, including reefers, dangerousSupply chain solutions provider Globe largely reflects the investments that have cargo, cargo consolidation and express/air Express Services (GES) is benefiting from been made in technology, providing end-to- cargo services. The company is also looking having Poonam Datta as its new chief end transparency of the supply chain, and to expand its geographical horizon. “Iran willcommercial officer. Poonam, who joined the giving access to e-commerce opportunities. be a game changer,” says Datta. “We arecompany in July last year, boasts more than The growth potential in the UAE, which is already looking closely at this market.”25 years in the shipping and logistics highly stable in geopolitical terms, is great,business, including a lengthy spell with and I am excited about the prospects for GES GES has three offices in the UAE,Maersk, where she became one of the looking forward.” including a 100,000 sq m facility at Jebel Ali.group’s youngest managing directors. The company recently received the The company also has an extensive fleet Poonam says: “GES had an excellent year Maersk Line Platinum award for the fifth of its own trucks, and provides a range ofin 2015, achieving double-digit growth. This consecutive year, she points out. 3PL and 4PL logistics services across the UAE market, as well as in Saudi Arabia and Kuwait.TMS UAE Yearbook 2016/17 45

CompaniesAl Mufaddal consolidates China Cosco raises profile with new allianceOne of the many engineering Huzaifa Shabbir, managing support services that back up director, Al Muffadal group The newly merged China Cosco group is set to the shipping industry in the become a major player in the UAE trades. In April UAE, Al Muffadal offers repair in Bahrain, where it aims to develop a this year Cosco Container Lines, CMA CGM, and maintenance services for manufacturing base. Last year it signed a Evergreen and OOCL jointly signed a Memorandum ofboilers, heat exchangers, economisers, boiler repair agreement with ASRY and Understanding to form the so-called Ocean Alliance.condensers coolers and automation has recently invested in a 21,000 sq ft The new alliance will collaborate closely to offersystems, as well as steel fabrication. office, store and workshop area to services on more than 40 routes, including the Far East- support companies calling into the yard. Middle East Gulf trades, where it is expected to have Huzaifa Shabbir, managing director, significant market share, calling into both Khorfakkansays:“Our main objective is to consolidate and Jebel Ali in the UAE.our position in the industry and hopefully,with continued professional and time- Subject to regulatory approval, the new alliance isefficient services, we will reach the due to start operations in April 2017, with an initialnumber one spot as far as boiler services combined fleet of over 350 ships. It will be the industryin the UAE are concerned in the next few leader in terms of service frequency and coverage.years.” The total fleet of China COSCO Shipping now From its headquarters in the UAE, Al stands at 1,114 vessels with a capacity of 85.32 millionMuffadal has plans to develop chemical dwt, making it the largest shipping company in thecleaning services, complementing its world. Its container fleet capacity is 1.58 million teu,existing business, and start ranking it fourth globally, while the company also has amanufacturing pressure vessels. Already fleet of 365 bulk carriers, 120 tankers and 3 million dwtAl Muffadal is fully accredited with various of general cargo and specialised vessels.ASME certificates. The company has also set up a facility46 TMS UAE Yearbook 2016/17

LawFichte & Co expands capabilitiesThis is the 11th year of the company’s existence in overdue as we have many long-term clients in Abu DhabiDubai and the maritime law firm has recently been and the office will enable us to serve our clients hereexpanding in a number of different directions better. Our partner Ziad Touma is running the office in Abu Dhabi and it has been a great benefit for our clientsIn the second half of 2015, maritime law specialist to have him on board.” Fichte & Co upgraded its corporate department with the appointment of Franco Grilli. In addition, its local Fichte plans to further expand its Abu Dhabi office litigation team is now being supported by Teresa and build an international network with other like- Starr, a senior barrister who handles matters in the minded law firms over the coming months. Ms FichteDIFC Court, after being appointed last year. says:“Clients often ask for an international law firm or expect us to have an office in London, Singapore orDuring the first half of 2016, with the lifting of Greece, but what they do not understand is that our way of working is far more efficient. We have strong networksIranian sanctions, Fichte & Co established an Iran desk in with law firms in all the major maritime hubs and choose our partner depending on the legal matter in hand, andits Dubai office and added Atousa Mahmoudpour to of course on the fee quoted. This way we can work more cost effectively, and often more efficiently, than with anthe team. A Canadian lawyer with Iranian roots, international set-up.”and with solid working experience in Tehran, she We have strong networks with law firms in all the majorcan offer far more than just legal support and is maritime hubsalready assisting clients with various steps in – Jasamin Fichte , Fichte & Codoing business, and setting up ventures, in Iran.Furthermore, in March 2016, Fichte finallyestablished an office in Abu Dhabi. Managing Jasamin Fichte, managingpartner Jasamin Fichte says:“This was long partner, Fichte & CoTMS UAE Yearbook 2016/17 47

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