TMS UAE Yearbook 2016/17

Maritime industriesSteady growth forIslamic P&I ClubHaving a UAE base has proved invaluable for theclub as it seeks to further expand the insuranceservices it providesRight: Amir Mosadeghi, The Islamic P&I Club has continued to develop Malaysia, in the foreseeable future.chief executive, Islamic P&I the scale and scope of its operations over the Mr Mosadeghi says:“It is perhaps not the norm for P&IClub past few years. Established in 2001, in its early days the club’s focus was on smaller vessels, clubs to have lots of offices in different countries, but thatWe are the including the offshore sector, but gradually it is what our clients want. One of the benefits of having aonly P&I club has extended its coverage to include larger ships up to P&I club presence locally is that it helps improvebased in an 25,000 grt, as well. standards generally in that market.”Islamic countryand we In the past few years, the club has started to manage Islamic P&I Club is a mutual and non-profitappreciate the its own marine insurance syndicate, focused on the organisation, and is principally involved in the business ofencouragement needs of carriers based in Islamic states. The club has also insurance and reinsurance liability cover, includingthe authorities introduced a reinsurance capability. protection & indemnity (P&I), freight demurrage &in Dubai have defence (FD&D), hull & machinery, charterers’liability, lossgiven us Amir Mosadeghi, chief executive, says:“Last year, of hire and war risk. Operating under the umbrella of the 2015, was a positive one for us, although of course we Organisation of the Islamic Conference, Islamic P&I Club – Amir Mosadeghi, were affected to some extent by the slowdown in the provides full P&I and FD&D cover up to a US$500 million Islamic P&I Club shipping business, which has impacted on the insurance limit of liability. market as well. We saw a small rate of growth last year and we have a similar expectation for 2016, with most of As with other P&I clubs, Islamic P&I is an association our members staying with us. Looking forward, there are of shipowners and charterers, who as the members some positive signs, with the Iranian market likely to control the club. Each member has a voice in the become more active, for example.” formation of policies at the annual general meeting, and elects the directors, who are responsible for formulating The Islamic P&I Club has a significant share of the UAE the underwriting policy, financial planning and the shipowners’market, as well as in other GCC countries. The extension of covers. scope of the club’s operation also extends to owners in South East Asia. Long-term strategy Mr Mosadeghi says:“We have a long-term strategy and we are here to stay. We know there are more experienced P&I providers in the market, so we try to compete by offering a high level of customer service and by providing insurance facilities more quickly.” The UAE has been home to the club since it started. Mr Mosadeghi suggests:“Being based in Dubai is a big advantage and we are grateful for the support we have received, and are still receiving, from the UAE government. We are the only P&I club based in an Islamic country and we appreciate the encouragement the authorities in Dubai have given us.” As well as its head office team in Dubai, Islamic P&I has a network of 480 correspondents worldwide. It also has offices in Jakarta, Indonesia, and has plans to establish a presence in Istanbul, Turkey, as well asTMS UAE Yearbook 2016/17 49

Maritime industriesCapt Harihar Prasad,managing director atMcQuillingMcQuilling expands Dubai-based teamThe Middle East and India represent important tanker sectors, as well as a long history of sale andgrowth markets for the global ship broker purchase transactions and project work. We also provide both market and bespoke research and consultancy forWe are Founded in 1972, McQuilling Partners has been our clients.”currently the involved in the global ship brokerage business foronly over four decades. The company has particularly Post-fixture operations and operational advice is ashipbroker in focused on the tanker segment and is employed source of pride for the McQuilling team.“We set the barDubai with a by a number of leading national and global oil high in terms of operations,”says Capt Prasad.“A keyspecialisation companies, as well as refiners worldwide. strength is the fact we have three master mariners in ourin the large office, which we believe gives us a competitive strength.”tanker market McQuilling Brokerage has been active in the Middle East and Indian Subcontinent for a number of years. New offices– Capt Harihar Prasad, However, the company has successfully increased its McQuilling presence and formalised its involvement in this In response to the rapid growth of the Indian shipping important region recently, setting up a Dubai subsidiary market and the consequent need for a full service in 2012 and incorporating offices in India in 2014. brokerage firm, McQuilling set up offices in India in 2014. The staff in Mumbai and Delhi comprise crude, product Dubai-based McQuilling Shipping Services DMCC and gas brokers.“Our clients can expect the same offers a comprehensive range of tanker and dry bulk professional and reliable services from our team in India brokerage services to clients across the Middle East and that they have come to expect from all McQuilling offices the Indian Subcontinent, covering the crude oil, clean worldwide,”Capt Prasad says.“All of our offices work from petroleum products, chemicals, dry bulk, offshore and a seamless electronic platform and proprietary database sale and purchase sectors. Research and consultancy, system.” including maritime logistics and finance, are also part of the portfolio. The United Arab Emirates is increasingly being viewed as a strategic shipping hub with time zone advantages Commitment that allow contact with all key shipping markets throughout the day. Capt Prasad adds:“Our Dubai office McQuilling has demonstrated its commitment to the is an integral part of the dynamic McQuilling global local market by steadily increasing the size of the Dubai network. We envision that future group expansion of that team and securing significant new business across the network and its various services will include this office.” region. From an initial staff of three shipping experts, the office now boasts a diversified group of 20 professionals. McQuilling Partners is a privately owned marine services company and is present on both the Capt Harihar Prasad, managing director, says:“We are International and Asian Baltic Exchange tanker panels. In currently the only shipbroker in Dubai with a addition to its regional presence in Dubai, Mumbai and specialisation in the large tanker market. Additionally, we Delhi, the group is headquartered in New York with have a meaningful presence in the chemical and product offices in Singapore, Athens, Caracas, Houston, Lima Mexico City and Rio de Janeiro.50 TMS UAE Yearbook 2016/17

Maritime industries Ship recycling demand is at a low ebb at present, but DTA believes the market will bounce back over the next few yearsDTA maintains leading positionOne of the leading players in the ship recycling can get the materials they want more cheaply thanmarket, Dubai Trading Agency (DTA) believes the buying recycled scrap metal from vessels.”Consequentlymarket will improve over the next few years after scrap prices have fallen and shipowners are holding backconsiderable volatility in recent times from recycling older tonnage until prices recover.Tahir Lakhani, DTA DTA has been in business since 1973, and was However, despite this downturn, Mr Lakhani believeschairman, says that his the first company based in the Middle East to market prospects are still good. ”A significant number ofcompany has been able to start buying and selling ships for recycling. As ships have to be scrapped over the next two to threemaintain its market-leading chairman Tahir Lakhani points out:“Over the years due to their age,”he claims.“Supply will come backposition despite increased past few years others have come into this busi- up, although the market is very volatile. In almost 40competition ness, but we have been able to maintain our years in this business, I have not seen the market market-leading position.” fluctuate as much as it has done in the past year or so.” Over the years, DTA has expanded globally and grown Diversifying to include several subsidiaries and associate businesses, having offices in New York, the UK, Singapore, Pakistan DTA is still primarily focused on ship recycling, although it and India. Primarily, the focus of the group has been on has diversified into other areas, including ship agency buying vessels targeted for recycling from shipowners and crew boat supply operations. Its subsidiary DTA worldwide and selling them to the breaking yards in the Shipping Agency has offices in Jebel Ali and Fujairah, and Subcontinent, Turkey and China. It is one of the largest currently operates three crew boats.“This business is cash buyers in the market, having purchased over 1,800 doing very well and the plan is to get up to five more vessels to date. crew boats in the foreseeable future,”says Mr Lakhani. During 2015 and the first half of 2016, there has been a DTA did for a time own several deepsea cargoships relatively low level of activity on the global ship recycling and traded them on its own account. But the company market. Mr Lakhani explains:“Metals are being bought on has in recent years withdrawn from this activity. However, the regular market as prices have come down. Customers Mr Lakhani says:“I would not rule out buying ships for our own account again. We are just waiting for the right time to acquire suitable dry cargo ships.” A significant number of ships have to be scrapped over the next two to three years due to their age –Tahir Lakhani, DTATMS UAE Yearbook 2016/17 51

Maritime industriesClarksons Platou set for shipbroking activity and has around 25 brokerssustained period of growth specialising in dry bulk operations, with a similar number in tankers and specialised products broking. In all sectorsClarksons Platou Dubai has grown steadily over the Clarksons Platou arranges spot work, contracts ofpast decade and the UAE office of the world’s leading affreightment (COAs) and time charters with the region’sintegrated shipping services group could see staff leading shipping companies, as well as several smallernumbers doubling over the next two to three years players.Established in 2005, Clarksons Platou Dubai has Essam Bella, managing The Dubai-based team is supported by an office in grown to become the fourth largest office in the director of Clarksons Platou Delhi, where there are three dry bulk brokers, and branch Clarksons Platou global network and now Dubai offices in Cairo and Alexandria. There are plans to expand, employs 65 staff. As result, the company is firmly and set up more offices in the region, offering not just established as the largest broker in the Middle shipbroking but also agency services.East and India. Fastest growing Essam Bella, managing director, observes:“Thegrowth we have seen over the past 10 years largely Mr Bella says: ”We are far and away the largest shipbrokerreflects the emergence of Dubai as one of the main in the Middle East, covering a market from Egypt andglobal maritime centres. The maritime sector in the UAE is Sudan to India. We are also the fastest growing subsidiarygrowing nicely; the government has a plan, knows what of the Clarksons Platou group in terms of transactions,it is doing and what its goals are, and that is important.” people and profitability. Our strength is our full service capability, drawing on the Clarksons Platou global Clarksons Platou Dubai will soon be moving to new network.”offices in Jumeirah Lake Towers, with double the space ofits current premises.“We need room to grow,”says Mr Bella. He draws attention to the range of added-value”We plan to expand the team and also add to the range of services it can offer clients, complementing its core shipservices we offer. Taking on the new offices will increase brokerage skills.“We have, for example, our own in-houseour ability to support local clients with consultancy and legal division,”he points out.“So if the need arises we canadvice, as well as practical shipbroking experience.” offer clients internal advice. We also have access to Clarksons Research Services’Shipping Intelligence The Clarksons Platou Dubai office focuses on Network database, which is a powerful tool for our clients.”Following the acquisition of RS Platou, Clarksons is now able to offer a full offshore broking service, as well as investment banking and financial services, through the Dubai office.Nasco Middle East holds its own insurance market, a trend that has been helped by the fast pace of growth of the DubaiNasco Middle East has been active in the region’s insurance Marina and the fleet based there.”market since 1976, building up a strong position in both themarine hull and cargo insurance sectors Nasco prides itself on offering a highly personalised service, and this has helped theNasco Middle East enjoyed a generally Bimal Bhatia, company develop its shipping client base insatisfactory year in 2015. As Bimal Bhatia, director, the region, where such relationships are muchdirector, international affairs, reflects:“Some international valued. Mr Bhatia points out: ”The strength ofareas of our business, such as medical, affairs, at Nasco our company is also our teamwork. We have aexperienced fast growth, while the shipping Middle East wonderful shipping team based in Dubai withbusiness saw relatively limited expansion. That good technical know-how that allows them tosaid, as far as shipping insurance is concerned, insurance, we are working with a number of focus on the quality of risk. We are looking towe held our own in what is now a very leading shipping companies to meet their work with owners who are technically soundcompetitive market.” needs in this area. We have built up a and who have the right priorities in place, and particularly strong position in the local yacht our team is highly skilled in being selective in The company offers hull and machinery the relationships we develop.”insurance for a wide range of vessel types, aswell as shiprepairers’liability insurance, which As well as hull and machinery, Nascocovers the risks involved in the repair and Middle East is active within the cargomodification of vessels. The company, insurance sector. Mr Bhatia points out:“Wehowever, specialises in certain types of high offer tailor-made marine insurance to cater forrisk cover, for instance relating to kidnapping the particular nature of the merchandiseand ransom, piracy and war risks. being transported. So special covers are available for bulk grains and frozen food, as Mr Bhatia says:“For hull and machinery well as oil, gas and chemical products, for example.”52 TMS UAE Yearbook 2016/17