EXPANDING POSSIBILITIESAND RAISING EXPECTATIONSSince 2006, Abu Dhabi Ports has been the pulse of trade in the emirate by managing every commercial port in Abu Dhabi.By focusing on cutting-edge technology, world-class service and innovative partnerships, our entities are ensuring thateverything is faster, safer and more cost-e ective – which means that your needs are always in good hands.Khalifa Port Free Trade Zone, the largest Free Zone in the Middle East covering an area of 100sq km, is fully integrated withthe 2nd fastest growing port in the world, making it one of the most attractive destinations for foreign direct investors togrow and expand their business.
CONTENTS Contents12 INTRODUCTION16 04 Recent months have seen the launch of a host of new projects26 PORTS & TERMINALSTMS UAE Yearbook 2018/19 09 :DMCA Ongoing initiatives underline the authority’s importance in strengthening Dubai’s maritime hub status 12 :DP WORLD Encouraging throughput figures for the first three months of this year have followed a solid 2017 16 ABU DHABI PORTS: Major progress and growth has been made across all of ADP’s operations 19 :RAK PORTS After volumes declined in 2017, business has been picking up again this year 20 :GULFTAINER After years of growth, Khorfakkan Container Terminal slipped back in 2017 as markets restructured 23 :HPH The global port-operating group now has a foothold in three UAE ports 25 :SHARJAH General cargo traffic throughput increased in 2017, but container volumes fell SHIPPING & SHIPMANAGEMENT 26 GULF NAVIGATION: Tangible and positive results have been achieved following the implementation of a new strategy 27 :NBF The National Bank of Fujairah is looking to strengthen its specialist marine team 29 :DTA The group’s business interests continue to expand and develop 33 :ISL The company has acquired its first vessel, a gearless Panamax bulk carrier 34 :ESHIPS The board has approved further sustainable fleet expansion 37 :ADNOC The company has combined all its shipping and marine services into a single organisation 1
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CONTENTS30 AWARDS38 30 TMS 2017 AWARDS: A night to remember51 SHIPBUILDING & SHIPREPAIR57 38 DRYDOCKS WORLD DUBAI: Dubai’s huge drydockManaging Director & Publisher: complex is entering a period of changeTrevor PereiraEditor: Clive Woodbridge 40 NICO: Shiprepair business improved significantly last year, whileManager-Marketing & Public Relations:Ammaar Murtaza Moosa third-party agreements should provide the basis for further growthDesign and Production: Nick BlaxillPublished by: The Maritime Standard FZE 42 :DMC More businesses have made Dubai Maritime City theirPO Box 25980, Dubai, UAE.Tel: +971 4 380 5556 base over the last year 45 :GULF CRAFT The company has become one of the leading global players in the yacht and leisure boat market 47 :ADSB Abu Dhabi Ship Building continues to build momentum in national and international markets 49 ALBWARDY DAMEN: The joint venture company has strengthened its reputation as a builder of sophisticated vessels CLASSIFICATION 51 :DNV The classification society is going through major changes to improve the way it works and delivers services 53 :TASNEEF One of the world’s youngest class societies is already a major influence on the regional maritime scene MARITIME INDUSTRIES 54 :LUKOIL The Moscow-based company’s lubricants business has continued to grow in the region 57 :ARC Despite challenging market conditions, the group’s yard in Umm Al Quwain performed well last year 59 :ISLAMIC P&I The P&I insurance provider is looking to offer additional services 59 NASCO MIDDLE EAST: The insurer had a satisfactory 2017 59 :MARLINK The communications firm has opened in Fujairah LAW 60 :HFW The company’s business in Dubai, and the Middle East generally, goes from to strength to strength 60 :WFW Watson Farley Williams had a busy 2017 with regards to finance and commercial shipping related matters. Fax: +971 4 380 5509 All rights reserved. Email: [email protected] Although every effort has been made to ensure that the information contained in this publication is correct, the publishers accept no liability for any inaccuracies that may occur. Published under the licence of: Creative City No part of this publication may be reproduced, Fujairah Free Zone stored in a retrieval system or transmitted in any Licence No.: 5568/2014 form or by any means without prior written Printed by: Emirates Printing Press, Dubai permission of the copyright owner. Copyright © 2018 The Maritime Standard.TMS UAE Yearbook 2018/19 3
INTRODUCTIONhub ambitionsInvestments demonstrate UAE’sRecent months have witnessed the launch of a host of new projects aimed at cementing thecountry’s position at the vanguard of the ports, shipping and logistics industries T he UAE has established itself as one of the The benefits to ADP will in fact start to be seen well leading global maritime and logistics hubs in before the new terminal is operational as MSC planned recent years. And the country is not letting up in to gradually shift some of its container handling in the its efforts to assume a vanguard role in the region to Khalifa Port from July this year. During 2017, development of facilities and technology that will meet the container traffic volumes at Khalifa Port declined after needs of the global shipping business for decades to come. several years of strong growth, due to shifting container alliances. The commitment of MSC to the port will Abu Dhabi and Dubai, in particular, are developing almost certainly reverse that trend in 2018. complementary infrastructures and support services that will ensure the UAE remains unrivalled in its ADP is not the only regional port operator to have importance as a regional centre for all aspects of the major investment programmes under way. A further maritime business . 1.5 million teu of capacity was added by DP World at its flagship Jebel Ali port through the expansion of CT3 The success of that strategy was most recently during 2017, while work on the latest CT4 facility underlined by the decision of the Geneva-based continues apace. This will be one of the most Mediterranean Shipping Company (MSC) to sign a technologically advanced, and heavily automated, 30-year concession agreement with Abu Dhabi Ports container terminals in the world when it handles its first (ADP), leading the carrier to establish a new container containers, a milestone that is anticipated in late 2018. terminal in the UAE at Khalifa Port. This will become one of MSC’s primary regional hubs, and is a New technologies development that seems set to trigger a significant increase in the scale of the shipping company’s As well as investing in infrastructure and equipment operations in the UAE. ahead of demand, a strategy that has served it well in the past, DP World is supporting the development of Under the terms of the agreement, MSC will invest several exciting new technologies, including Hyperloop, around AED4 billion (US$1.1 billion) over the lifetime a concept that could revolutionise the movement of of the container terminal concession agreement. Full goods within the UAE, and indeed regionally, in the details of the investment are being finalised, but in the near future. In April 2018, a joint venture with the first phase of the project it is likely to include the Virgin group, called DP World Cargospeed, was acquisition of 13 new quayside gantry cranes and a established to provide Hyperloop-enabled cargo contribution to port dredging works, deepening the systems to support the fast, sustainable and efficient available draught to 18 m. This will enable the port to delivery of palletised cargo. handle large bulk carriers as well as the large new generation containerships of 23,000 teu, which MSC The first initiative of its kind in the world, DP World has on order, when the first stage of the MSC terminal Cargospeed is expected to provide very rapid development at Port Khalifa is completed in 2020.Smarttechnology is The deal with MSC follows on from an earlierbeing tested at agreement with Cosco Container Shipping Ports, whichJebel Ali is in the process of developing a dedicated container terminal of its own at Khalifa Port. Construction work on this new terminal got under way last November and will involve investment of around $700 million, adding 2.4 million teu of annualised capacity, with an option to increase capacity by a further 1.1 million containers a year. As a result of the MSC and Cosco investments, over the next five years the total capacity of the container terminals at Khalifa Port will increase to more than 8.5 million teu annually. This will make the Abu Dhabi hub one of the world’s top 25 container ports.4 TMS Maritime Yearbook 2018/19
INTRODUCTIONtransportation services for high-priority goods, delivering Right: MSC is to emerging technologies and developing new solutions byfreight at the speed of flight and yet closer to the cost of invest heavily in young, inspired creators and innovators that can thentrucking, the partners state. Hyperloop can achieve top creating a new be practically applied to real-life trade and marketspeeds of up to 300 m per second, making it two to three hub at Khalifa situations.”times faster than high-speed rail. The technology also Portfacilitates autonomous operations designed to reduce Other investmentshuman errors and run with minimal delays. Away from the two big hub centres in Khalifa Port andSmart solutions “The Jebel Ali, there are significant investments in progress elsewhere in the UAE. RAK ports has a major new dryDP World is further experimenting with other smart first bulk cargo facility under construction, as well as a newtechnology solutions. These include a driver fatigue initiative cruise terminal, for example, while work is in progressmonitoring and control system, which is installed in of its kind to extensively modernise facilities at Fujairah port,trucks to keep drivers alert, especially during night in the particularly with regards to container operations.shifts. Sensors are mounted on dashboards to monitor world, DP Gulftainer’s Khorfakkan Container Terminal could alsodriver activity, including alertness. The system is on trial World be significantly expanded under plans being developedat Jebel Ali port in Dubai, and if successful could be Cargo- by the operator. Hutchison Ports has taken a leadingrolled out elsewhere. A wireless monitoring device using speed is role at container terminals in Ajman, Umm al QuwainInternet of Things (IOT) technology to detect expected and RAK, and is developing an investment strategy toequipment failure and defects is also under to provide increase the volume of cargoes moving through thesedevelopment, as well as surveillance drones that very rapid smaller UAE ports.monitor activities through live video feeds and locations transportaway from fixed camera networks. –ation Shipping businesses located within the UAE also services have some significant investment programmes under ADP is similarly working on some interesting for high- way. Gulf Navigation, for example, has acquired twotechnology-based initiatives, launching a new Port priority chemical tankers, Gulf Mirdif and Gulf Mishref, andDigital Innovation Lab over the past year. It hopes this goods has further vessels on order in China that will doubleinitiative will lead to more innovation by providing a the size of its oceangoing fleet to 20 vessels by 2020.platform for creative minds in the UAE to develop fresh The company is also investing in a new trainingtechnological solutions to meet regional trade and initiative, together with the Jordan Academy forindustry needs. The facility is located at Maqta Maritime Studies, to recruit and retain UAE and ArabGateway, an Abu Dhabi Ports subsidiary, which is the nationals, training them for careers as officers anddeveloper and operator of the first port community engineering on its vessels.system in the emirate. Dr Noura Al Dhaheri, generalmanager of Maqta Gateway, said: “This is the first Port The increase in oil prices during the past year hasDigital Innovation Lab in the Middle East. It promises created more opportunities for the company, especiallyto fulfil the need for a facility dedicated to studying as a result of the increase of petroleum products production in the Gulf region, a trend that is expected toTMS UAE Yearbook 2018/19 5
INTRODUCTIONaccelerate still further over the next few years. This has services. Due to its strategic location, world-class KhorFakkan’scontributed to an increase in demand for petroleum infrastructure and open and free economic system, Dubai containerproducts and petrochemicals transportation to the is the region’s leading commercial and trading hub as terminal is beingbenefit of Gulf Navigation, which has witnessed a well as its key re-export centre. Growth in tourism, trade considered forsignificant improvement in financial performance over and aviation sectors in the lead-up to Expo 2020 is set to expansionthe past year. Khamis Juma Buamim, managing director drive increased domestic consumption, and we are Left: GAC hasand group chief executive of Gulf Navigation Holding, confident that our new contract logistics facility will be invested in asays: “We are optimistic and confident about our able to meet the growth projections of our customers and new logisticsoperational and financial results in 2018. Furthermore, businesses in Dubai and the region.” facility in Dubaiwe have managed to become a ‘one-stop shop’ for the Southmarine services sector and this has contributed to IMO membershipincreasing the revenues generated by our main activity oftransporting petrochemicals and petroleum derivatives.” One of the highlights of 2017 for the UAE maritime industry was the success of the country in its campaign Another Dubai-based company, the Tristar group, to become the first Arab country to win Category Bhas similarly been expanding its fleet in response to membership of the International Maritimemore positive market trends, through the acquisition of Organization (IMO) Council. The declaration wasboth tankers and dry bulk carriers on the secondhand made during the 30th General Assembly meeting inmarket by its Eships division. The company is expected London, last November, amid considerableto make further purchases of existing ships in both international praise for the UAE’s pivotal role insectors over the coming year. Eships is a wholly owned promoting the international maritime system andsubsidiary of Tristar; the shipping business has grown in driving the growth of international maritime trade.less than three years from assets of US$20 million toover US$320 million, contributing over 30% of the His Excellency Dr Abdullah bin Mohammed Belheifgroup’s profits on an EBITDA basis in 2017. Al Nuaimi, Minister of Infrastructure Development and Chairman of the Board of Directors of the FederalCautious expansion Transport Authority (FTA), said that this historic victory marked an important milestone in the UAE’sChris Peters, chief executive, Eships, says: “Whilst the ongoing progress and paves the way for a new stage inshipping markets have been challenging in the past few the country’s global leadership role. Membership of theyears, with many traditional operators struggling, Council is expected to enhance the UAE’s ability toTristar has as part of its integrated strategy recognised contribute to the development of international laws andthe opportunity to cautiously expand in this segment. regulations that will promote international trade,Tristar and Eships are currently reviewing their shipping transport and international shipping.strategy for the coming years in conjunction withshareholders and are positively looking at the HE Dr Al Nuaimi attributed the UAE’s success inopportunities available in the market.” being elected to the IMO Council to the country’s “advanced capabilities and competitive advantages”. There have also been a number of notable He added: “The UAE’s achievements do not stop here,investments that will bolster the UAE’s position in the as we are pushing to continue the country’s competitivelogistics sector. In May 2018, GAC Dubai opened a new role in global trade and international economy,contract logistics facility in the Logistics District of especially in our continuing efforts to expand theDubai South. The new depot adds to the company’s development of local ports with a total investment ofexisting contract logistics capacity and complements AED157 billion over the coming years.”established facilities in the Jebel Ali and Dubai AirportFree Zones, bringing total capacity in the Emirate to The UAE’s maritime sector is on an upward surge,over 170,000 pallet positions dedicated to customers and the country’s reputation as a place for the shippingactive in the local and regional markets. industry to do business is undimmed. Prospects for 2018 and beyond appear positive indeed. Fredrik Nyström, GAC Group vice president for theMiddle East, says: “The new facility opens as GACDubai celebrates 25 years of delivering contract logisticsTMS UAE Yearbook 2018/19 7
PORT KHALIDPORT KHOR FAKKANPORT HAMRIYAH & FREE ZONE
pOrts & terminAlsDMCA takes leading role in shaping Dubai’s strategic directionOngoing initiatives in many different sectors “It is a continuing achievementunderline the authority’s importance in to be able to sustain ourstrengthening Dubai’s maritime hub status ongoing initiatives and deliver new ones in 2017 and 2018. last year the Dubai Maritime City Authority (DMCA) celebrated its 10th anniversary, having – Sultan Ahmed bin Sulayem, chairman, DMCA been founded in 2007. In that time, the organisation has helped bring about a radical change in the local maritime sector through an extensive range of initiatives and regulations that aim to strengthen Dubai’s position as a leading international maritime hub. Sultan Ahmed bin Sulayem, DMCA chairman, says: “It is a continuing achievement to be able to sustain our ongoing initiatives and deliver new ones in 2017 and 2018, with the goal of developing a competitive, inclusive and attractive maritime cluster in Dubai. Over the years, our efforts have begun bearing fruits and have been gaining traction in building a safe, efficient, sustainable, and vibrant maritime community, which is essential in the economic diversification programme of the UAE.” Over the past 18 months or so, DMCA has successfully launched several significant new projects designed to further improve local maritime infrastructure, and has enacted some important new regulations. DMCA has also adopted international best practice in many of its processes and has signed new agreements with local, regional and global partners. The Authority also started to implement the Dubai Maritime Sector Strategy (MSS) in 2017 and has continued to make progress with this initiative in 2018.“It is Highlights The Authority continues to work hard to highlight Dubai’s best assets and strengths as a leading internationalan honour Other highlights of the past 18 months include the maritime hub, a fact that was reinforced after the emirate launch of the Dubai Maritime Virtual Cluster (DMVC), was named one of the best maritime capitals in the worldfor DMCA a platform for facilitating effective communication in 2017, and ranked fifth among the most competitive among members of the cluster, overcoming the and attractive maritime clusters, in a report by the Menonto be part constraints of time and distance; the Innovation Quay, Group for Business Economics. Dubai is the first Arab an initiative designed to optimise technological city to feature on the prestigious list.of the innovations to enhance maritime activities; Sea Dubai, a marine leisure initiative; and Maritime Dubai, under the Sultan Ahmed bin Sulayem says: “It is an honour foremirate’s management of the Dubai Maritime Cluster Office DMCA to be part of the emirate’s achievements. We (DMCO), which provides an integrated framework for will continue to build on our activities that contributeachieve- maritime policy development. to Dubai’s efforts in building on these successes.”ments. Sultan Ahmed bin Sulayem adds: “We have also Some of the most important initiatives launched in been very active in participating in the UAE Maritime 2017 focused on improving DMCA’s interaction and – Sultan Week, which we will be joining again at the end of coordination with stakeholders. There was also a Ahmed bin October this year. The provides a national platform notable focus on enhancing local marine leisure where we can explore ways to further push the capabilities Sulayem, growth of the maritime sector and showcase Dubai’s chairman, efforts in enhancing its competitiveness as a leading DMCV is an online virtual portal for promoting maritime player.” Dubai’s main pillars in maritime development, which DMCAtms maritime Yearbook 2018/19 9
pOrts & terminAlsinclude maritime clustering, empowering the sector, and development initiatives that encourage knowledge DMCA has aspreading awareness, and encouraging participation. It transfer will be on the agenda while innovations and number ofalso promotes research and development, innovation, smart transformation will also continue to be a key initiatives aimedtraining, and best international maritime practices, as focus. In particular, we have to review how at betterwell as facilitating the access of international maritime technological advancements can help simplify and regulating andstakeholders to world-class local maritime services. accelerate the pace of change within government facilitating the services and achieve greater customer satisfaction.” marine sector Maritime Dubai, under the supervision of DMCO, isa comprehensive maritime policy framework that is Maritime competitivenessdesigned to stimulate coordination among stakeholdersby putting under one umbrella all the key elements of The DMCA further aims to boost the UAE’sthe Dubai maritime cluster such as shipping, ports and competitiveness in the maritime sector by ensuring thatharbours, logistics, maritime arbitration, maritime policies are in place to facilitate doing business andclassification, maritime licensing, financing, and training investment flows, as well as the development of newand policy making. skills in the sector. “We optimise advanced maritime infrastructure and integrated logistics services to Innovation Quay is a technology and innovation promote the UAE and attract global investors,” saysplatform which enables developers, innovators, and Sultan Ahmed bin Sulayem. “Through strengtheningresearchers to transform their proposals into actual Dubai’s contribution in the maritime sector, we canprojects to help strengthen Dubai’s leadership on the continue to capitalise on its achievements andglobal maritime scene, while Sea Dubai is a platform that encourage knowledge transfer to act as a catalyst forhas been created to facilitate the registration and the entire country’s maritime development.”licensing of sailing permits; the identification of specificmaritime speeds; the identification of permitted areas for Ongoing partnerships with other governmenttourists to sail; the identification of places of rest; floating entities, the development of maritime training platformsrestaurants; marinas and yachts; as well as working with and policy developments are among the most importantcompanies engaged in renting maritime crafts. ways that DMCA plans to contribute to achieving UAE’s strategic objectives in the maritime sector in DMCA works closely with a number of local groups future. “We will also take full advantage of the manyand bodies to deliver its aims and objectives. One of innovative technology advancements that have takenthese is the DMCO, which oversees the implementation place in recent years. Our goal is to harness theseof the various maritime initiatives launched by DMCA, technologies to facilitate maritime transactions andin line with the objectives set under the MSS. Another is bring happiness to our customers.”the Maritime Advisory Council, a consultative bodycomposed of public and private players in the sector “We optimise advanced maritimewhich reviews initiatives, also in line with the goals of infrastructure and integrated logisticsMSS, particularly looking at aspects of modernising services to promote the UAE and attractinfrastructure, formulating legislative and legal global investors.frameworks, improving logistics, diversifying – Sultan Ahmed bin Sulayem, chairman, DMCAinvestment opportunities and enhancing the confidenceof regional and international investors.Top prioritiesSultan Ahmed bin Sulayem adds: “Strengthening theseand other ongoing projects are the top priorities for thisyear and beyond, as part of our commitment to furtherpromote Dubai as one of the leading maritime capitalsin the world. We are continuously working with ourpartners in the government sector, private companiesand international organisations to ensure that Dubai’smaritime community is an investment-friendly andattractive environment that drives economicsustainability and growth.” DMCA remains keen to expand the scope of itswork still further, and lay down effective policiesdesigned to support and secure maritime operationsand businesses across Dubai. “We will also continueto enhance maritime and logistics services andoperations in the UAE, as part of our efforts withinMSS. We will do this through initiatives that promoteexcellence, quality and inclusiveness in shippingservices, maritime legal expertise and maritimeinsurance, among others, in line with Dubai Plan2021,” says Sultan Ahmed bin Sulayem. “Researchtms maritime Yearbook 2018/19 11
Ports & terminAlsDP World posts healthy throughput growthDP World achieved encouraging container traffic figures at Jebel Ali in the first three months ofthis year, building further on a good performance in 2017Jebel Ali’s the Dubai-based DP World group handled the previous year. This consolidated Jebel Ali’s positionthroughput 17.6 million teu worldwide across its portfolio as the world’s tenth largest container port, with over 80increased by just of container terminals in the first quarter of weekly container services, providing direct connectionsunder 3% over 2018, with container volumes increasing by to more than 140 ports worldwide.the first quarter 7.3% year-on-year. The biggest increases were seen atof 2018 terminals in Europe and Africa and Australia, as well as Sultan Ahmed Bin Sulayem, DP World group in the Middle East. chairman and chief executive, points out that given the prevailing circumstances, the UAE ports business Its business in the UAE also continued to handle outperformed expectations last year. “We are pleased to increased container traffic volumes, although the rate of see a stable performance and as we look ahead into growth was lower than the average for the group as a 2018, we expect to continue to grow and meet full year whole. Jebel Ali port handled 3.8 million teu in this targets,” he says. “Jebel Ali port’s focus on origin and period, 2.9% more than in the first quarter of 2017, destination cargo has helped us overcome headwinds in and this is considered a more than satisfactory rate of international trade.” increase, taking into account regional geopolitical and market factors. Jebel Ali is also an established container transhipment hub, serving all the leading economies in Over the course of 2017, DP World UAE Region the region. Regional political tensions have inevitably handled 15.4 million teu, which was 4% more than in had an impact on this side of the business, but the dip in12 tms UAe Yearbook 2018/19
Ports & terminAlsfeeder volumes has been compensated for by increases ship-to-shore cranes, manufactured by ZPMC, each “As wein direct call activity. with a 70 tonnes twin-lift capability, while Container Terminal 2 (T2) will soon receive three more ship-to- look Mohammed Muallem, chief executive and managing shore cranes and 12 ARMG cranes. The latest ahead intodirector, DP World, UAE Region, adds: “We have ship-to-shore cranes for CT2 are dual-hoist, tandem-lift 2018, weinvested well in equipment and infrastructure in order types capable of lifting two 40 teu containers or four 20 expect toto be able to handle the latest generation of mega teu boxes, with a combined weight of 100 tonnes. The continuecontainerships. Also, one of our main achievements over 12 ARMGs are double cantilever/double truck lane to growthe past year has been our success in accommodating all models capable of handling twin-lift containers to a and meetthe various new liner shipping alliances, ensuring that combined weight of 70 tonnes. full yearwhere possible they are being handled at one terminal, targetsavoiding any inefficiencies. We have captured business Other container terminal upgrades at Jebel Ali infrom all the alliances, and the revised arrangements we 2017 included raising the heights of seven existing quay – Sultanhave put in place for them are working very well.” cranes by retrofitting them to meet the requirements of Ahmed BinAdded container capacity Sulayem, groupLast year DP World stepped up investment at Jebel Ali,by adding 1.5 million teu of annual capacity to chairmanContainer Terminal 3 (T3). The expansion was in and chiefresponse to emerging market demand and increases the executive,port’s overall capacity from 18 million teu to DP World19.5 million teu today. T3 now has a capacity of around4 million teu a year and is set to become the world’slargest semi-automated terminal. The first batch of 37new ship-to-shore (STS) cranes and 47 Automated RailMounted Gantry (ARMG) cranes are alreadyoperational and servicing customers, while the Chinesecrane manufacturer ZPMC is commissioning the finalbatch of six single-hoist, tandem-lift cranes, with a 100 tonnes lift capacity, for T3. Investments have also been made at Jebel Ali’s Container Terminal 1 (T1) facility, which now has 15 replacementtms UAe Yearbook 2018/19 13
Ports & terminAlsnew-generation container vessels. This major While Jebel Ali is primarily a container port, general Above: One ofrefurbishment and enhancement project will improve cargo volumes at Jebel Ali are also significant, DP World’sproductivity while prolonging the lifespan of the cranes. accounting for around 40 million tonnes a year, while achievements inFurther cranes at both CT1 and CT2 will be similarly cruise passenger volumes have surged in recent years. In 2017 was theraised in height over the coming year. 2016-2017, the Dubai Cruise Terminal at Port Rashid accommodation welcomed 625,000 passengers, double that of the 2013- of all of the new Meanwhile, work is well under way on the 14 season. global shippingtechnologically advanced and highly automated new line alliancesUS$1.5 billion Container Terminal 4 (T4). Located on Jebel Ali Free Zone within Jebel Alireclaimed land to the north of T2, the new facility will Portinclude 1,200 m of quay, with a water depth of 18 m Also part of the DP World operation in the UAE is Jebelalongside, equipped with 13 dual-hoist quayside gantry Ali Free Zone (JAFZA). Last year a management “Wecranes that will be remotely operated and supported by restructuring took place and that business, together witha fleet of 35 ARMG cranes. The final stages of UAE port operations, now falls under one management will beequipment commissioning are in progress and the team, reporting to Mohammed Muallem. He says: “This looking atadditional capacity provided, estimated to be over change has provided added value for ourselves and our the3 million teu a year, will be brought on line as required. supply chain stakeholders. Many companies are existing customers of both Jebel Ali port and the Free Zone and terminal Mr Muallem says: “We will be looking at the existing having the two businesses under one umbrella has utilisationterminal utilisation numbers and will react to that. It is brought a number of synergies and efficiency gains.” numberscomforting to know that we have T4 up our sleeves.” and will Over the course of 2017, more than 500 new react toSmart City vision companies registered at JAFZ, taking the number of that. tenants there to over 7,500. Combined, Jebel Ali portDP World is working hard to make its operations smarter, and the Free Zone now contribute about 20% of the – Mohammedmore efficient, faster and safer in line with Dubai’s vision UAE’s GDP, underlining the importance of the merged Muallem,to become a Smart City. Sultan Bin Sulayem points out: operation to the country’s economic wellbeing. chief“Jebel Ali is the world’s most productive port with acontainer handled every two seconds. It is a great example executive andof smart trade with 99% of customer service delivered managingonline. On average, 19.5 million transactions went directorthrough our Dubai Trade portal every year, enabling our DP Worldcustomers to save on time and cost.” Automation has been a key focus for Jebel Ali’s portmanagement in recent times, driving productivity,efficiency and safety benefits. Quay cranes at T3 arenow largely remote-controlled, and this approach isbeing rolled out at T2 now. “We are taking great care toensure that as we make operational changes, bybringing in crane automation, we do not negativelyimpact the high efficiency levels we achieve at theseterminals,” adds Mr Muallem. DP World has consistently invested ahead ofdemand, and that has ensured that it has had sufficientcapacity to avoid bottlenecks building up. SultanAhmed Bin Sulayem accepts that even this high level ofinvestment may not always be enough in the future. Headds: “Some of the challenges we face over the courseof a year may include congestion, as vessels do notmake their berth windows. We do our best to managethis issue but it is not always easy for vessels to maketheir window on time if they are delayed at other portsor the weather is bad. Inclement weather, such assandstorms, can impact productivity, but overall wemanage the challenges well.” Overall, DP World is encouraged that containervolumes within the UAE are rising again and it expectsthat Expo 2020 and the opening up of new markets willdrive further medium-term growth. Sultan Bin Sulayemadds: “The ongoing improvements to capacity andproductivity at Jebel Ali send a clear message to ourcustomers that their favourite port in the region remainsfocused on providing them with the first-rate serviceand efficiency they expect from us.”tms UAe Yearbook 2018/19 15
PORTS & TERMINALS milesMtoanjeosrreached by Abu Dhabi PortsAbu Dhabi Ports (ADP) continues to achieve progress and growth across all its operations ADP has consolidated its position as a key enabler of the UAE’s economic and trade the port’s existing capacity of 2.5 million teu. Cosco growth over the past year. In 2017 the also has an option to increase this capacity by a further 1.1 million teu in the future. The first phase of the new organisation handled a total of 18.63 million terminal is expected to become operational in the first tonnes, the highest ever recorded in its 11-year history. half of 2019. The compound annual growth rate for ADP’s general cargo and bulk business over the past five years is 70% UAE-China trade and 2018 is expected to be another record-breaking The agreement with Cosco will make Khalifa Port an 12 months. even more important gateway for UAE-China trade It is not just in the cargo sector that ADP is achieving flows. Supporting this initiative, agreements have been success. Its cruise business is also booming and the signed in the past year with the China Council for the 2016/17 season saw a 40% increase in the number of Promotion of International Trade and Jiangsu Province vessel calls, up to 161 cruise line visits, and a 48% in China. These deals are expected to bring significant upturn in passenger numbers. Further strong growth in investments into Kizad, the largest freezone in the cruise line activity is forecast for 2017/18. region which lies adjacent to Khalifa Port, as well as The sustained increase in ADP’s cargo and cruise boosting cargo flows through ADP facilities. passenger volumes has been underpinned by significant Captain Mohamed Juma Al Shamisi, ADP chief investment in infrastructure and equipment in recent executive, says: “Having Cosco locate its hub in Khalifa years. Further expansion is under way, most notably at Port will strengthen our position enormously. It will Khalifa Port, where last November ADP and China’s help our customers access markets worldwide, with Cosco Shipping Ports broke ground on the construction more competitive freight rates and shorter transit times, of a new container terminal that will be the Chinese and will help us to attract more transhipment business.” carrier’s main regional hub. ADP and Cosco have also MSC has also recently signed a multimillion-dollar signed an agreement to build a new 275,000 m2 container concession deal with ADP. This will further strengthenMSC is one of freight station, which will be the largest in the region. the port’s position as a regional hub.the leading A 35-year concession agreement concluded last year Khalifa Port also handles significant volumes of carscustomers atKhalifa Port gives Cosco the right to operate a new US$700 million and other ro-ro traffic. To further support the growth of container terminal that will add 2.4 million teu a year to this side of the business, in early 2018 ADP signed at16 TMS UAE Yearbook 2018/19
PORTS & TERMINALSagreement with the Spanish firm Autoterminal, a “ Havingmember of the Noatum Maritime Group, to create ajoint venture company called Autoterminal Khalifa CoscoPort, which will manage the ro-ro/car terminal under a locate its15-year concession. hub in Khalifa The 300,000 m2 car terminal at Khalifa Port, which Port willhas more than 550 m of dedicated quay, will in future strengthenoffer value-added services to car terminal users, ourincluding PDI inspections, vehicle customisation and positionother technical services. The main short-term objectives enormouslyof the agreement are to provide the same level of qualitythat Autoterminal offers its clients in the port of – CaptainBarcelona, and to position Khalifa Port as the regional Mohamedhub for all commercial car trade routes in the Gulf, EastAfrica and the Red Sea. Juma Al Shamisi (left), ADP is also working on a number of initiatives atKhalifa Port with Emirates Global Aluminium (EGA). chiefThe two companies have recently opened a new executive,container freight station together which will facilitatemovements between the EGA aluminium smelter at Al ADPTaweelah and the port, and are working to upgrade theports, logistics infrastructure and services used abroad converted into an enclosed facility with a number ofby EGA to load raw materials destined for the UAE. jetties for local commercial fishermen, as well as a new ice house and fish market building. Furthermore, last December EGA signed a long-termport facility agreement with ADP to import bauxite for Fujairah concessionthe Al Taweelah alumina refinery at Khalifa Port usingCapesize vessels. This agreement has enabled ADP to Expanding ADP’s operational scope within the UAE, ainvest to develop the port so that it can become the first 35-year concession agreement with the Port of Fujairahin the Gulf capable of directly handling these large bulk was signed in 2017. As a result, Fujairah Terminals, acarriers, thereby reducing EGA’s shipping costs and new operational division of ADP, has been established,opening up opportunities for other bulk trades. with over AED1 billion earmarked for investment inDredging work, now under way, will deepen the Khalifa infrastructure and equipment. Under the terms of thePort channel to 18.5 m and the basin to 18 m depth. agreement, Fujairah Terminals is now operating all container, general cargo, ro-ro and cruise facilities inSmaller ports the port.Investments are also being made by ADP in some smaller Fujairah Terminals will carry out the deepening ofports in Abu Dhabi, as well as other locations in the various berths to 16.5 m, to enable the port to cater forUAE. Delma Port, located on the east side of Delma larger vessels. It will also build a new 300,000 m2Island, has been developed to serve as a general, storage yard and construct an additional 1,000 m longmultipurpose port that will handle cargo, passenger quay to accommodate the expected growth in theferries and fishing vessels. The existing facility primarily number of ships arriving at the port.serves landing craft belonging to the Al Dhafra RegionMunicipality. The creation of the new port has involved a ADP will furthermore equip Fujairah with newtotal investment value of over AED170 million. Facilities equipment, including post-panamax quay cranes, RTGscreated include 160 wet berths, 104 dry berths, a 500 m and advanced IT systems. Maqta Gateway, a whollybreakwater to shelter the harbour, three ferry/ro-ro owned subsidiary of ADP, has been engaged to developberths, and an ADNOC marine fuelling facility. a Port Community System that links up various stakeholders in the Fujairah port business. Captain Development of Al Mirfa port is part of an economic Shamisi says: “We aim to bring greater efficiency todevelopment programme for the Western Region of operations at Fujairah and better equip the port to meetAbu Dhabi. The port’s natural harbour is being the needs of global shipping companies in line with the highest international standards.” Left: Business is The development of the new berths and yard areas at booming Fujairah is scheduled to commence in 2018. The port through ADP’s will remain operational during this time to service cruise terminal existing and new clients. If all goes to plan, the in Zayed Port additional capacity, including the new post-Panamax cranes, will become operational in 2020, revitalising the port as an East Coast UAE gateway, that serves the needs of shipping line customers that wish to avoid transits into the Gulf.TMS UAE Yearbook 2018/19 17
PORts & teRminAls The new bulk terminal berths at on the market, and the building of two Saqr Port under construction new deep-draught berths, totalling 700 m in length, with the ability to accommodateRAK Ports Capesize vessels.bounces back The two new mobile cranes arrived at the port at the end of March 2018 and areWhile 2017 saw volumes decline, business has been picking up now fully operational. The first of the newagain in the first quarter of 2018 berths is on schedule to come on stream early in fourth quarter of this year, withOne of the region’s biggest One of the the second during the first half 2019. handlers of bulk cargoes, RAK port’s new Ports experienced something mobile To service the new port extension, a of a downturn last year. The harbour new tug is under construction at Albwardyoverall volume handled at its various cranes Damen in Sharjah. This ASD tug, Osprey,facilities dropped by around 13%, to which will be fitted with Caterpillar engines and47.87 million tonnes, compared with the became Rolls-Royce bow thrusters, and will have a2016 throughput figure. operational bollard pull of 80 tonnes in order to be in March able to handle the larger ships that will call This dip, after a lengthy period of 2018 at Saqr Port in future.sustained growth, reflected a number ofdifferent factors. These included a general Dr Pearson says: “The provision ofdownturn in trade, the lower number of Capesize capability will increase the servicemajor building projects in the region, and offering to our customers and providethe effects of the political situation with them with better economies of scale forQatar, one of the main markets for RAK product movements. This will enable themPorts’ aggregates traffic. to better service customers not only within the GCC, but also further afield. InRecovery under way The main focus of development for addition to the investments we are making, RAK Ports has been its Saqr Port facility, we will continue to focus on decreasingHowever, there are clear signs that a recovery where an AED500 million investment in vessel turnaround times by improvingis under way for 2018. Throughput for the both infrastructure and equipment is under productivity and thereby help ourfirst quarter of 2018 was 14.1 million way. This has included the purchase of two customers to expand into new markets.”tonnes, an uplift of almost 10% when new Liebherr 800 mobile harbour cranes,compared with the equivalent period of the the biggest of their type currently available 25-year concessionprevious year. Dr Adrian Pearson, portmanager, says: “Prospects for 2018 so far are Last year was also notable for the signing ofmore positive and indicate some stability in a 25-year concession agreement for Hongthe market. We expect that throughput Kong-based Hutchison Ports to operate thevolumes will continue to grow and will at Ras Al Khaimah container terminal. Theleast be on the same level as 2016.” terminal, which will operate under the name Hutchison Ports RAK, is a four berth, 350,000 teu annual capacity facility that has an 800 m long quay with a depth alongside of 12 m, in addition to a 20 hectare container yard. It is in a good location for local markets, being just 25 km from the RAK city centre, and in proximity to the RAK Maritime City Free Zone and the industrial zones of Al Hamra and Al Ghail. Speaking to mark the start of the concession, Eric Ip, Hutchison Ports Group managing director, said: “We are excited to have the opportunity to invest in and operate a container terminal facility that is situated in a gateway location and is home to the world’s largest ceramics manufacturer. RAK has a strong export base, with many fine shippers of ceramics, pharmaceuticals, glass, cement, crushed rock and other products, and these companies can now take advantage of a less congested and more sustainable multimodal shipping route to Jebel Ali and beyond through RAK.”tms UAe Yearbook 2018/19 19
PORTS & TERMINALSIndustry restructuring hits Khorfakkan volumesAfter delivering sustained growth over a number of years, the Gulftainer-operated KhorfakkanContainer Terminal experienced a setback in 2017Khorfakkan Container Terminal (KCT), Gulftainer is optimistic that the setback is only managed by Gulftainer on behalf of the temporary. Peter Richards, chief executive, says: Sharjah Ports Authority, has been an “Khorfakkan continues to offer unique value to impressive success story for much of the past shipping lines, given its strategic location outside thedecade, and more. Over the years it has become an sensitive Strait of Hormuz, as well as its industry-important transhipment hub for many leading shipping leading levels of efficiency, flexibility and speed. Welines, offering an alternative to ports inside the Gulf. remain confident that the port will continue to play a part in all our customers’ regional networks.” Last year, however, KCT suffered a significantdownturn. Gulftainer’s UAE throughput, which also Boosting traffic flowsincludes the smaller Sharjah Container Terminal,dropped by around 30% compared with 2016 figures, The company also plans to take steps to boost importto 2.36 million teu. and export traffic flows and reduce dependency on transhipment activity. Mr Richards says: “Given the This was partly due to ongoing problems in global fast-paced changes in the industry, we are constantlycontainer shipping markets, but mainly as a result of an reviewing our services and capabilities across ourunprecedented number of mergers and acquisitions in portfolio. While KCT has traditionally been used as athe industry. This led customers to switch transhipment transhipment hub, we are increasingly receivingactivity to other facilities in the region.20 TMS UAE Yearbook 2018/19
PORTS & TERMINALSgateway cargo as well, which we see as a massive Gulftainer plans Handling (MACH) Terminal Operating System (TOS),opportunity going forward.” to attract more which provides computerised control of the movement gateway cargo and storage of containers in and around the terminal, KCT, in particular, continues to demonstrate its through and CargoWise. The latter has further improvedability to efficiently handle the largest container vessels Khorfakkan Gulftainer’s logistics operations by increasing visibility,in service. One of its most notable recent milestones was Container efficiency and quality of service, the company states.the maiden call of CMA CGM Antoine De Saint TerminalExupery. The 20,600 teu capacity, 400 m-plus ship is The 20,600 teu Investment in infrastructure is also on the cards.KCT’s largest ever vessel call to date. Mr Richards adds: capacity Antoine Gulftainer is proposing to expand KCT, extending its“Receiving some of the largest containerships in the De Saint existing Berths 1 and 6, providing deepwater accessworld signifies our ability to deliver the highest Exupery, which alongside. An additional container yard stacking areastandards of operational efficiency, and is a true called at KCT in at the northern end of the container terminal istestament to shipping lines’ confidence in us. We expect April 2018, is the planned as well.to receive more maiden calls throughout this year.” largest ship to be handled by International portfolio To further enhance productivity, and gain Gulftainer tocompetitive advantage, Gulftainer has embarked on an date While based in the UAE, Gulftainer has an internationalambitious technology transformation strategy in recent portfolio, encompassing terminals in Brazil, Iraq,times, implementing the new Marine and Container Lebanon, Saudi Arabia and the USA, which it aims to further expand over the next few years. The company recently signed an agreement with the state of Delaware to operate the port of Wilmington for 50 years. It is anticipated that Gulftainer will invest US$580 million in the US port, including approximately US$410 million for a new 1.2 million teu container facility at DuPont’s former Edgemoor site, which was acquired by the Diamond State Port Corporation in 2016. “Our strategy is firmly rooted in creating value for our partners, and we are aiming to do so by looking at more expansion opportunities in North America, including the West Coast, Gulf of Mexico and Nova Scotia, as well as in other regions, such as Africa,” Mr Richards concludes.TMS UAE Yearbook 2018/19 21
PORTS & TERMINALS The Ajman terminal is being upgraded through a programme of investment in landside facilitiesHPH expands facility with an 845 m quay and a 23 hectare back-up yard. With good road UAE presence connections to the northern UAE, and a strategic location close to regional trade lanes, the facility is poised for significant growth, Hutchison Ports believes. New terminalThe global port operating group now has a foothold in three Also in November 2017, Hutchison PortsUAE ports commenced a new terminal operation at Saqr Port in the emirate of Ras AlLast November the Government of Khaimah (RAK). Under the terms of the Umm Al Quwain and Hutchison concession agreement, Hutchison Ports Ports announced that the Hong will operate the facility for a period of 25 years. Hutchison Ports RAK is a four-berthKong-based port operator had facility with an 800 m long quay and abeen awarded a concession to operate depth alongside of 12 m, in addition to aAhmed Bin Rashid Port in Umm Al 20 hectare yard.Quwain, a key entry and exit point for The third, and longest establishedcontainer, general, ro-ro and bulk cargo in facility in the group’s UAE portfolio isthe northern United Arab Emirates. Hutchison Ports Ajman, which includes aCommenting on the latest addition to 1,250 m long container quay, as well as aHutchison Ports’ 51-port global network, general cargo terminal. The company is inAndy Tsoi, managing director, Middle East the process of refurbishing a warehouse inand Africa, stated: “The UAE economy is Ajman port, upgrading mobile harbourgrowing strongly and there is great crane capacity, repaving an emptydemand for terminal facilities in the Hutchison Ports is now operating facilities in container yard and adding 200 new reefernorthern part of the Emirates. Umm Al Quwain container points.Target “Our target is to improve the service level of the port to facilitate the emirate’s import and export trade“Our target is to improve the service level and we look forward to contributing to the growth ofof the port to facilitate the emirate’simport and export trade and we lookforward to contributing to the growth of the local economy.the local economy.” Andy Tsoi, managing director, Hutchison Ports Hutchison Ports UAQ is a four-berthTMS UAE Yearbook 2018/19 23
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porTS & TErMinAlSMixed year of the container berths in Khorfakkan. A spokesperson says: “While this may seem a bit odd to some, it has actually provided cruise guests with a unique experience offor Sharjah ports being within a buzzing commercial harbour. Construction of a cruise terminal is being contemplated, however, and a decision will be taken after due consultation with relevant parties. Khorfakkan has a value proposition forGeneral cargo traffic through Sharjah ports increased during cruise tourism that is hard to match.”2017, but container volumes fell Complementary portsSharjah Ports Authority is throughput dropped from 3.42 million teu The three ports complement each other. responsible for three ports, Port in 2016 to 2.32 million teu last year. Port Khalid has traditionally supported the Khalid, Khorfakkan and Hamriyah, offshore service industry and is the Sharjah Ports Authority, working with principal hub for such activities, while also being a port which handles more UAE-and combined these facilities the government, is looking at ways of bound containerised cargo thanhandled 1.15 million tonnes of general making Khorfakkan more attractive and, transhipment.cargo in 2017. This was well up on the in particular, is undertaking a project to Khorfakkan is a leading transhipment870,000 tonnes recorded the year before enhance hinterland connectivity, creating a port for containers while Hamriyah is anand reflects a buoyant local economy. new road that will link directly to the port industrial port handling raw materials forPetroleum cargoes cutting through the mountains. This will various industries, as well as being a major reduce the time required to transport player in the oil storage and distributionPetroleum cargoes were also higher at containers to Sharjah ICD and the sector.9.6 million tonnes, from 8.5 million southern Emirates. “This way each of our ports plays itstonnes, but dry bulk cargoes were roughly The authority is also planning part in making Sharjah a key maritimethe same at around 618,000 tonnes, and investments in new cruise facilities. hub for the region,” the spokespersonvehicle movements dipped slightly to Currently cruise vessels are handled at one adds.27,750 units, from just over 28,000 the “Construction of a cruise terminal is beingyear before. contemplated and a decision will be taken after due consultation with relevant parties It was container traffic moving throughthese ports that suffered most, however,from regional trade patterns and shippingindustry trends. The total Sharjah ports’TMS UAE Yearbook 2018/19 25
SHIPPING & SHIPMANAGEMENTsuccess storyGulf Navigation hails turnaroundTangible and very positive results have been achieved as a result of new strategic directionDubai-based shipowner and operator Gulf US$1.15 million compared with 2016.” Navigation was hit hard by the financial He continues: “We have also sorted out all downturn. The company suffered significant outstanding legal and financial issues relating to debts problems as a result, and was struggling to of over $63 million, and the company for the first timemeet debts incurred during earlier expansion phases. in six years has had a clean audit report. Our targetsA new management team, led by Khamis Juma have been reached, and looking to the future we areBuamim, managing director and group chief executive, committed to doubling our fleet size and having a well-has put the company on a new path, and in so doing balanced and diversified business model.”has turned the business round. Mr Buamim says: “Anyturnaround success should have measurable outcomes, Ship acquisitionsand we are happy to report that we have achieved Furthermore, over the past year Gulf Navigation has fully13% growth in the value acquired and financed two petrochemical carriers, Gulfof the company’s assets Mishref and Gulf Mirdif, a move that is said to reflectand a year-end profit increasing demand for the company’s shipping services,increase of 7% in 2017, globally and regionally, which has required an increase indespite the challenging in “We have in a short timemarket conditions. We and managed to overhaul thehave also continued company and get it back onto driveimprovements we track for a safer and long-efficiencylast yearachieved lasting voyage.costsavings – Khamis Juma Buamim, managing directorof over and group chief executive, Gulf Navigation26 TMS UAE Yearbook 2018/19
SHIPPING & SHIPMANAGEMENT Gulf Mishref, one of NBF looks to strengthen two chemical specialist marine team tankers taken into full ownership by The National Bank of Fujairah (NBF) Mr Bariman notes that its Gulf Navigation over has made it a strategic objective to customers are gradually establishing recruit, develop and retain bankers relationships with new sources of the past year who are able to engage shipping capital, something that has not been industry customers as sector quick or easy. “We have seenfleet capacity. Mr Buamim adds: “We have also expanded specialists. As Bora Bariman, head, management teams educating newour network and today we are servicing over 13 terminals Energy and Marine, says: “NBF’s investors about the prospects foracross the world. We are planning to further expand this Energy and Marine desk manages profitability under the ‘new normal’coverage through our newbuilding programme.” relationships that can be daunting trading conditions. These efforts are for generalists. One of the things bearing results and we have seen The company has ordered a number of new ships from that makes NBF different is the fact new equity materialising for thoseChina’s Wuchang Heavy Industries group. These include that its advisors and bankers are businesses who are able tofour MR-type chemical tankers, with an option for two passionate advocates for the energy effectively demonstrate themore. Long-term charters for these vessels have been and marine industry while meeting robustness of their business model,”secured recently, the company notes. As well as investing the compliance and return on capital he addsin new ships, Gulf Navigation is upgrading its existing objectives of the bank.”vessels to ensure they comply with international NBF accepts that its customersregulations on ballast water treatment and SOx emissions. Banking in the shipping sector face a challenging environment and has in the past been dominated by as a result the bank has beenDiversifying operations European and East Asian banks cautiously managing its portfolio to which have deployed their very assess the realistic earningsGulf Navigation is also in the process of diversifying the large balance sheets in this sector. potential of the vessels it hasscope of its operations, so that it no longer focuses Mr Bariman points out: “As these financed. “That said, we recogniseprimarily on shipping alone. Investments in shiprepair global banks have curtailed their that the shipping sector is ofand other service facilities are planned for both Fujairah lending appetite, we are not seeking strategic importance to the UAE andand Khorfakkan, while it is working on a project to to replace their large lending tickets that is particularly true of thedevelop its presence in the offshore support service and by ourselves. Rather, with our sector offshore segment,” says Mrwell stimulation vessel sectors. Gulf Navigation is also expertise and advisory capabilities, Bariman. “Consequently NBF isin the process of finalising a major acquisition of we can connect our clients to a more continuing to approve new facilitieslivestock vessels that it will own, manage and operate as robust club of lenders, and signal which are supported by charterpart of the UAE’s National Food Security Plan. confidence to new sources of equity contracts with regional national oil that the sectors requires.” companies.” Mr Buamim reflects: “In general, the market is stillgoing through a transformation but we are in the right Boraplace and have good inter-connectivity to build on. With Bariman,our global reach we have managed to secure new head ofcharters and expand our network.” NBF’s Energy The new management team at Gulf Navigation has anddeveloped a strategy designed to salvage the company Marinefrom its severe and difficult situation based on taking a divisionmore holistic approach to the business. 27 Mr Buamim says: “We have in a short time managedto overhaul the company and get it back on track for asafer and long-lasting voyage. We are in clear waterstoday and everyone is determined to build on thissuccess and keep growing.” TMS UAE Yearbook 2018/19
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shipping & shipmAnAgemenT DTA Ship Agency has built up a fleet shipowners and operators in the UAE and of high performance crew boats we aim to invest further to strengthen our market position. Last year we moved toDTA builds up a diversified DMC as our headquarters and this has been a valuable step for us. It has an service portfolio excellent strategic location, and easy access to Dubai Drydocks, Port Rashid and theThe business interests of the DTA group continue to expand supply chain at DMC, so this is an idealand develop base for our operations.”Dubai Trading Agency (DTA) past year or so. The DNV GL-classed DTA DTA has also been acquiring a number was founded by its current 10, DTA 11, DTA 12 and DTA 13 are of bulk carriers and container vessels, chairman, Tahir Lakhani, in sister vessels built by Strategic Marine of which it is trading on its own account Dubai around 45 years ago, Singapore that have a 25 knot service rather than selling on for recycling. Tahirand as such is one of the UAE’s longest speed, and capacity to transport 51 Lakhani says: “We are looking to expandestablished marine companies. DTA was a passengers and 10 crew, as well as 50 tons our owned fleet of dry cargo ships overpioneer in the regional shipbreaking and of deck cargo. this coming year for worldwide deepsearecycling business and this is still the trades. We currently own four bulkbiggest single part of the group’s Support vessels carriers and two containerships and weoperations, buying and selling for expect to add to that number during 2018,demolition over 100 ships a year. In addition, DTA Agency operates two assuming the market conditions are right.” larger utility support vessels, DTA 8 and However, over the past few years the DTA 9, which can take up to 80 In another initiative, the Lakhani familycompany has sought to diversify its passengers as well as 50 tonnes of deck interests have established a small,operations into the ship operating and cargo. These were also built by the well- independent shipbroking operation, calledtrading side of the market, and it has done respected Singaporean yard. Further Gulfstar Shipbrokers. A team of sixso with considerable success. In particular, investment to expand the DTA Ship brokers has been assembled – three inDTA Ship Agency, with Tahir’s son Ali Agency fleet is at the planning stage. Dubai, two in London and one in the US –Lakhani at the helm as managing director, with a particular focus on S&P markets.has significantly expanded the scale and Ali Lakhani says: “We are already nowscope of its business and now provides a considered to be one the leading providers Board memberswide portfolio of services, including port of marine and logistics services toand liner agency, crew logistics, ship spares Tahir Lakhani says: “We have some greatand maintenance, and ship chandlery, from One of DTA’s owned bulk carriers, the people on board working with us onits base in Dubai Maritime City. 31,800 dwt Dubai Moon strengthening and diversifying our operations. People like Flemming Jensen, To deliver these services to vessels formerly of ISS, who heads up DTA Shipcalling in the UAE, or at the Fujairah Agency, and Lars Juul Jorgensen, who isanchorage, DTA Ship Agency now chief executive of our recently establishedoperates a fleet of 13 multipurpose Dubai Navigation Corp affiliate, bringoffshore support and crew boats. This with them a lot of expertise and industryincludes a series of six relatively new fast knowledge. We are building an excellentutility vessels, all built between 2005 and team that I am optimistic will take the2008, that have been acquired over the shipbroking, shipowning and agency business further over the next few years.” The core ship recycling side of the business performed well in 2017, and DTA is broadly optimistic about prospects for the year to come. However, Tahir Lakhani, recently elected vice chairman of the UAE Shipping Association, is concerned about the possible impact of the government’s recent decision to introduce a 5% rate of VAT. He says: “In theory shipping is exempt but there are a number of areas where the precise policy is still unclear. This could be a game changer for all shipping and maritime businesses in the UAE, including ship recycling. Consequently we hope the government will remove the uncertainty and give us greater clarity as to the imposition of VAT on certain goods and services, as soon as possible.”Tms UAe Yearbook 2018/19 29
TMS AwArDSTMS Awards TMS UAE Yearbook 2018/19raise the bar higher still A glittering, glamorous occasion, hosted by Bollywood star and former Miss Universe Lara Dutta, The Maritime Standard Awards 2017 was by common consent the most successful and high profile to date. The great and the good of the maritime industry, not just from the Middle East and Indian Subcontinent, but globally as well, assembled in Dubai for the fourth annual Awards. Held at the iconic Atlantis The Palm, under the patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum, the event attracted around 700 of the top decision-makers in the industry. The 2017 Awards were notable for many well-deserved presentations. In addition to the 23 awards determined by the elite judging panel, there were eight special awards presented by the TMS team for particularly impressive individual achievements. The Lifetime Achievement Award was presented to Oman Shipping Company’s Sudhir Rangnekar; TMS Personality of the Year was Mohammed Al Muallem, DP World UAE managing director; the Young Person in Shipping went to Amir Hossein Mosadeghi of Islamic P&I Club; the Hall of Fame Award was presented to KOTC chief executive Sheikh Talal Al-Khaled Al-Sabah; the Excellence in Shipping Award went to Omar Abu Omar, president, maritime & operations, of Gulf Navigation; and June Manoharan, director, Lukoil Marine Lubricants, was named the TMS Woman in Shipping Award winner for 2017. Preparations for The Maritime Standard Awards 2018 are now well advanced. These will again take place at the Atlantis The Palm, on Monday October 15. For more information go to www.tmsawards.com 30
TMS AwArDSTMS UAE Yearbook 2018/19 31
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SHIPPING & SHIPMANAGEMENT According to the company, the timing is right for this investment, based on currently positive trends in the dry bulk sector. Indeed, ISL plans to make further vessel acquisitions if the market continues to be attractive. Captain SR Patnaik, ISL chief executive, says: “This is the first vessel that we will own and operate ourselves, and is part of a strategic shift towards building up an owned fleet. Panamax is a good size for our trades, and we expect to carry a range of cargoes, including coals, grain and fertilisers, with ISL Star.” Business over the past year has been ISL has recently acquired its very challenging, the company states, but first vessel, the gearless has seen some interesting developments. Panamax bulker ISL Star Indeed, ISL has diversified its business by getting into new trade lanes andISL makes its move chartering specialised vessels including ro-ro ships, liquid bulk tankers and containerships, in addition to its core drywith bulker acquisition cargo business. East of Suez Operationally, ISL’s main focus hasDubai-based International Shipping & Logistics (ISL) is starting always been East of Suez, with its main trade lanes being the Middle East Gulf toan interesting new chapter in its history India, intra-Gulf, Southeast Asia to India, and Australia to India. New trades thatFounded in 2004, ISL is a wholly- requirements of the Tata Steel group. have been added recently include owned subsidiary of TM Over the years the company has evolved movements to and from the Black Sea, International Logistics, whose and diversified, and now has a broad Far East and East Africa, as well as the Indian coastal business.shareholders include Tata Steel customer base, including leading traders, Captain Patnaik says: “The Indian(51%), NYK (26%) and Martrade manufacturers, mine owners and other government’s Sagarmala initiative is(23%). The company, located in Dubai’s shippers, not just in the Middle East and creating a positive context for coastalprestigious Jumeirah Lake Towers the Indian Subcontinent, but worldwide. freight operators. This is opening up acomplex, was initially set up primarily to number of opportunities which ISL plans to explore, including movements of coal,meet the bulk shipping First vessel This operation has, until now, been based containers, steel and bagged fertiliser. We on an ‘asset-light’ strategy, with ISL expect that more and more cargoes are chartering tonnage of 20,000 dwt to going to get diverted from road and rail 120,000 dwt size on single timecharter to movement by sea, helped by incentives trips, or short periods of up to six provided by the government of India for months, to meet the needs of its promoting coastal shipping, including customers. discounts on port tariffs and reduced tax In March this year the company structures.” took the important step of ISL has been established in Dubai for acquiring its first vessel, a over 15 years now, and is supported by 74,461 dwt gearless Panamax offices in Mumbai, Chennai and Kolkata. bulk carrier, the 1999-built, Recently, the company has set up a base Marshall Islands flagged, in Singapore, as part of a greater focus Vika, now renamed ISL Star. on South East Asian markets. “The Indian government’s Sagarmala initiative is creating a positive context for coastal freight operators. – Captain SR Patnaik, chief executive, ISLTMS UAE Yearbook 2018/19 33
ShiPPing & ShiPMAnAgEMEnT Eships is expanding its tanker fleet by buying tonnage on the secondhand marketEships expands Over the past year Eships has taken steps to fleet in a sustainable manner expand and upgrade its fleet, diversifying its operational boundaries in the process.Part of the Tristar Shipping’s group, Dubai-based Two secondhand MR tankers have beenshipowner and operator Eships now has board purchased, and subsequently chartered to ENOC,approval for further fleet expansion strengthening its existing relationship with the regional oil major. In addition, a further coastal vessel has been added along with a Kansarmax bulk carrier. The latter is an important acquisition as it marks Eships’ re-entry into the dry bulk business as an owner for the first time since the company was taken over by<$&+7,17(51$7,21$/ Ѳ o 0 - Ѳ Ѳ o m m ; 1 | ; 7 Ķ o 1 - Ѳ Ѳ o l l b ; 73257 6+,3$*(1&<6(59,&(6 2))6+25(6(59,&(%2$76 /2*,67,&6 :$5(+286();ruob7;-=ѴѴu-m];o=-];m1v;ub1;v-m7ou ); o@;u 1olrѴ;|; u-m]; o= \"_br v0-m7u ş );ruob7;-=ѴѴ-uu-o=-u;_ovbm]=-1bѴbঞ;v;1;ѴѴ;m|u;Ѵ-ঞomvb|_ ou|v;mvu;-tb1h-m7 \"rrѴ\";ub1;vuom7|_;1Ѵo1hbm7b@;u;m|rou|v Őr;mņѴov;7őķbm_ov;1Ѵ;-u-m1;ş=ou-u7bm]ķ;L1b;m|;vv;Ѵ|um-uom7ĺ o= |_; & ĺ ); om -m7 or;u-|; - Y;;| o= Ѷ -m7|u-mvrou|-ঞomvņѴo]bvঞ1-Ѵvrrou||o;mvu; \";ub1; u-[v bm1Ѵ7bm] u;v_ )-|;u 0-u];v o= vrrѴv;ub1;v-u;7;Ѵb;u;7bmঞl;-m7-|-m$_; +-1_| |;-l hmov |_; blrou|-m1; o= -ub;7 vb;v -11ollo7-ঞm] -7;t-|; ;1h ]b;mঞl;ĺ;@;1ঞ; 1ollmb1-ঞom -m7 -11;vvb0bѴb|ĺ u vr-1;ş -vv;m];u1-r-1b||ovrrou|o@v_ou;v|-@ bv ;tbrr;7 b|_ |_; Ѵ-|;v| |;1_moѴo]b1-Ѵ or;u-ঞomvƑƓŖƕŖƒѵƔ-|-ѴѴrou|vo=& ş\"o_-u );_-;|_;bmŊ_ov;;r;uঞv;|o-7bv;ķrѴ-mķu;vou1;v|ovv|-bmv;-lѴ;vvYoo=bm=oul-ঞom -m7 ;;1|; v_brl;m|v o= -ѴѴ |r;vķ mo l-;u-m7 1om|-1| b|_ -ѴѴ 1om|u-1|;7 r-uঞ;v |o =ѴCѴѴ _o ]u;-| |_; 1_-ѴѴ;m];ķ _bѴ; ;mvubm] ou1v|ol;uu;tbu;l;m|vĺ 1Ѵb;m|vĽ 1olrѴb-m1; b|_ -ubov u;]Ѵ-|ou u;tbu;l;m|vĺ )_;|_;u 1Ѵ;-ubm] -m7 7;Ѵb;ubm] vr-u; r-u|v |o - ;vv;Ѵķ b7;mঞ=bm] uoঞm] blruo;l;m|v |o 1| 1ov|vķ ou lobm] -m ;mঞu; bm=u-v|u1|u;o;uv;-vķ;-u;ou \"$ u;vou1;ĺ & ! Ň & Ň ! Ň & Ň \" ! Ň +-1_|m|Ѵĺoĺ _om;ĹƳƖƕƐŊƖŊƑƑƓƑѵƏƖ or;u-ঞomvŠ-1_|Ŋbm|Ѵĺ1olf-bu-_ourou-|;L1; -ĹƳƖƕƐŊƖŊƑƑƓƑѵƐƏŇ ĹƓѵƐƑ ĺ-1_|Ŋbm|Ѵĺ1ol&\"oll;u1b-ѴbѴ7bm]ķƏƔ|_ѴoouŋoL1;oĺƔƏƐrrĺf-bu-_\";- ou|ķbm-!o-7ķf-bu-_ķ&ĺĺ 34 TMS UAE Yearbook 2018/19
ShiPPing & ShiPMAnAgEMEnTTristar in March 2016. The company had previously RMi-flagged vessels benefit fromtested the waters by chartering bulk tonnage for short-term contracts. Chris Peters, chief executive, says: local presence“Initial re-entry has been carefully selected with vesselschartered against cargo contracts. The first acquisition The Republic of the Marshall Islands Captain Amarjit Kauchhur, vicewas concluded in February 2018 and further (RMI) Registry is now the second president, Middle East, and regionalacquisitions in this sector are being evaluated.” largest in the world, with more manager, IRI than159 million gross tons (GT), andRestructuring over 4,350 vessels at the end of problem and we can help them April 2018, continuing its steady quickly find solutions within theEships was very active in dry bulk until its main growth record over the past few regulatory framework.”shareholder, Abu Dhabi-based development company years. International Registries, IncMubadala, sold it to Oldendorff Carriers in June (IRI), and its affiliates, provides Quality is of paramount2014. It operated a variety of dry types, from large administrative and technical support importance to the RMI Registry.transloaders to conventional bulkers and barges that to the RMI maritime and corporate Prior to registration, the RMI vetswere acquired to service long-term industrial registries and the company’s local the owner, operator and vesselcontracts. The German company extracted the dry presence in Dubai is helping before acceptance into the registry.bulk division and merged it with its own. It later sold increase the RMI flag’s market share Moreover, during the vessel’s timethe tanker arm of the company, along with the Eships among Middle East owners. in the registry, the RMI conductsbrand name, to Tristar. regular risk assessments and works Captain Amarjit Kauchhur, vice with owners and operators to Currently the Eships fleet stands at 24 vessels. This president, Middle East, and regional ensure vessels meet the registry’sincludes eight MR tankers, five 8-13,000 dwt chemical manager, IRI, says: “The Dubai office quality standards. As a result,tankers, two LPG carriers, and eight coastal ships, as is now one of the most important in vessels flying the RMI flag arewell as the recently acquired bulker. Eships does not the IRI network, and 2018 has got accorded White List status by porthave any new ships on order at the present time, but Mr off to a very good start for us here. state control bodies.Peters says: “Board approval has been given for the In the first three months of the year,acquisition of additional secondhand tonnage and we 17 ships were registered for Middle RMI continues to maintain its USare committed to growing the shipping business in a East owners, almost as many as were Coast Guard Qualship 21 rating, nowsustainable manner. With a mix of long and medium- recorded in the whole of last year.” for the 14th consecutive year, asterm charters, many to oil majors, we have a stable cash well as White List status on both theflow that enables the group to expand using shorter Those vessels that have entered Paris and Tokyo Memorandums ofterm charters for newer acquisitions. This should allow the RMI Registry in recent months Understanding (MoUs).us to benefit from the market upturn forecast over the are a mixture of existing and newnext few years.” customers. Captain Kauchhur says: The RMI Registry is now the “We have continued to grow our world leader for tankers, and is alsoCautious optimism regional market and we now have the number one flag of choice for around 16 million gross tons of Greek shipowners.The company is cautiously optimistic about prospects Middle East owners’ tonnage flyingfor its tanker business, although it expects any the RMI flag.”improvement is more likely to be seen in 2019 than in2018. Eships is also upbeat about the drybulk market, While the Dubai office haswhere asset prices have risen significantly in the past 12 attracted vessels of many differentmonths. Mr Peters adds: “We had anticipated further types to the RMI Registry, it has aimprovements due to an increase in global trade. particular strength in the offshoreHowever, with current uncertainties over a possible and supply vessel segment. One oftrade war between the USA and others, we may see its key customers in this regard is aslower growth in the short term.” Dubai-based offshore vessel operator which has a number of Safety is a top priority for the company and all newbuildings in progress that willEships’ crew have to undergo vocational training fly the RMI flag when delivered.courses on a regular basis. The company also organisesan annual crew seminar with the assistance of technical Captain Kauchhur adds: “Ourmanagers, where lessons from past incidents are shared Middle East clients tell us thatwith the crew. having worked with us they have such a positive experience that they One of its key clients, Shell, has appointed Tristar’s decide to give us more. We are thechief operating officer Shailesh Bildikar as a member only ship registry with its own officeof its Partners Safety Focus Group and he is now in the region, and that means we canactively involved in implementing Shell’s initiatives to talk to local shipowners regularlyachieve ‘Goal Zero’ incidents in the industry. Mr one-on-one. It is easy for them toPeters adds: “Senior management regularly visit the come and see us if they have avessels and interact with the crew, demonstratingvisible safety leadership. They can also verify 35implementation of our safety programmes onboardthe vessels.”TMS UAE Yearbook 2018/19
WORLD CLASSMARINE SERVICESEstablished in 2013, SAFEEN is a wholly owned subsidiary of Abu Dhabi Ports.We provide a comprehensive range of marine and ancillary quayside servicesto all vessels calling at seaports in the emirate of Abu Dhabi. With over 200extensively trained and certi ed sta operating a modern eet, we o erinnovative services at world class standards.
SHIPPING & SHIPMANAGEMENTIntegration promotes A year ago the company took delivery of the last in a new series of ten new unified brand Offshore Support Vessels. These are all DNV-classed and designed to meetThe ADNOC group has combined all its shipping and marine growing customer demand for services in this sector. Further orders for new vesselsservices activities into a single organisation of different types are expected to be placed by the company within the nextIn December last year ADNOC The integration is also expected to give few years. brought all the assets, people, ADNOC Group the opportunity to products and services provided by its attract new business and take on The company already has a strong presence in the product tanker and drysubsidiaries ADNATCO, Esnaad and additional contracts. Furthermore, it will bulk markets and believes it will be able to capitalise on demand from theIrshad into a single unified operating provide a solid platform on which to base ADNOC group to further grow its market share in these sectors. It also planscompany, which is now trading as investment in new tonnage. Capt Al to leverage its existing capabilities in the tanker business to enter the crude oilADNOC Logistics & Services. The Masabi says: “We are looking at fleet transportation market.integrated company operates a fleet of 27 expansion opportunities and this is Capt Al Masabi adds: “We are now one of the most important shippingoceangoing vessels, including bulk something we are currently working on at companies in the UAE, with an established reputation locally andcarriers, tankers and LNG carriers, as a strategic level. The integration of the internationally, and have tremendous scope to grow. The integration process wewell as well as 48 vessels engaged in three companies have been through has brought to life a unique combination of expertise andoffshore logistics, and 47 inshore support into one is a capabilities, and this is generating more opportunities for us to grow in manycraft, such as tugs and mooring vessels. great stepping different sectors.” stone towards Expanded scopeOptimising operations future Already the integrated company has been successful in expanding the scope of itsRecently appointed chief executive Capt expansion in operations. A recent contract with the petrochemicals company Borouge toAbdulkareem Al Masabi says: “Bringing shipping and operate port facilities at Ruwais was the first to be signed by ADNOC Logistics &these businesses into a single company logistics.” Services as a new entity.has allowed us to better service the Capt Al Masabi took over the reins as chief executive in April this year after arequirements of the ADNOC successful period as executive vice president, ports, at Abu Dhabi Ports,group, as well as the more than playing a key role in the rapid growth and expansion of that organisation.100 third-party customers we He says: “I am greatly looking forwardsupply. We are also now to this challenging new role and my intention is to put operational delivery atbetter able to optimise the forefront of a new customer-centric strategy. The culture of the organisationour fleet operations, will go through a period of change over the coming years, and my vision is thatachieve greater efficiency ADNOC Logistics & Services will become a fast-paced organisation with ansavings, and will be entrepreneurial mindset.”looking to leverage the ADNOC Logistics & Services has around 4,000 employees and more thanbenefits of digitalisation 100 customers worldwide, and can draw on over 40 years of operationalacross our maritime experience. As well as being a significant service provider to the ADNOC group,business interests.” the company has a diversified global customer base.“Bringing these businesses into a single company has allowed us to better service the requirements of theADNOC group and our global customers.Capt Abdulkareem Al Masabi, chief executive, ADNOC Logistics and ServicesTMS UAE Yearbook 2018/19 37
SHIPBUILDING & SHIPREPAIRTransition time for Drydocks World DubaiNow part of the DP World Group, Dubai’s huge drydock complex is entering a period of changeIn January this year, DP World completed the acquisition of Drydocks World Dubai (DDW), different maritime companies, is the new chief operating which is now a core component of a newly formed officer, while Radostin Popov is heading up the commercial and business development functions, havingMaritime Services Division that also includes the more than 25 years’ experience working for DP World,P&O Maritime operation. P&O Ports, Fesco and Summa Group.Following the takeover, a new management team,headed by chief executive Rado Antolovic, has been Restructuring and revitalisinginstalled. DP World has a reputation of ensuring Collectively they have been tasked with restructuringconsistency within its senior management, a fact that is and revitalising the DDW business. Mr Antolovic says:now expected to apply to DDW, following a series of “Our mandate is to make the changes necessary to alignchanges at the top in recent years. DDW with the DP World approach and integrate thisMr Antolovic has also been appointed as chief business into the wider group. One area that we will beexecutive and managing director of the Maritime focusing on is our people. We want to make sure theyServices Division and one of his main tasks will be to have the right skills, and where possible are multi-bring together the group’s maritime businesses, creating skilled, and that they are better utilised in future.”a strong platform for long-term growth. Mr Antolovic The team is also looking at ways of attracting newsays: “We believe we will be able to develop strong business and diversifying the range of projectssynergies between the different businesses within the undertaken at the yard. “We want to secure moreMaritime Services Division. Having these operations business, of course,” says Mr Antolovic, “But the aim iswithin a single unit will open up significant additional not just more volume, but a more innovatory business,opportunities for us going forward.” in areas such as LNG carrier repairs, ballast water andThe new management team at DDW is a very scrubber retrofits, and the installation and servicing ofexperienced one. As well as Mr Antolovic – who has a battery-powered vessels.”proven track record of change management and There is an appreciation of the need to reduce therestructuring in previous positions at JSC NCSP in yard’s dependency on the tanker business, given theRussia, DP World, P&O Ports and APL – Robin Reed, likelihood of even stronger regional competition for thiswho has had a career spanning over 40 years with type of work over the next few years. This38 TMS UAE Yearbook 2018/19
SHIPBUILDING & SHIPREPAIRdiversification strategy will include seeking to get more Tanker time. This will look at the opportunities for investmentspecialised vessel repair and upgrade work, but also business in infrastructure, systems and equipment, but also thepossibly developing a position in the newbuild market continues to be types of people we will need to recruit if we are to havefor smaller, niche vessel types, including potentially tugs, the main a successful and sustainable business.”offshore vessels and yachts. element of work carried Last year was a reasonably successful one for DDW, Mr Antolovic says: “We have a unique facility here given the difficult market conditions that continue toin Dubai and nobody else in the region has the out at prevail in the repair and conversion sector. Theinfrastructure and capabilities that we possess. That Drydocks company achieved an increase in the amount of projectsgives us scope to develop the business, focusing on the World Dubai completed compared with 2016, and there has been arepair and construction of highly specialised vessels, positive start to 2018, with a 10% increase in thewith added value.” “Our volume of orders received in the first quarter of the year, against the same period of 2017. Under DP World control, there will also be a review aim is toof operations. “Our aim is to make sure we become make sure Over the first three months of this year, DDWmore efficient and pursue opportunities in line with our we completed drydocking work and repairs to 68 vessels ofstrategy,” Mr Antolovic states. become various types, with around 60% of the volume coming more from the tanker market. DDW has long-term A further focus will be the employment of advanced efficient agreements with a number of leading tanker operators,IT systems and new technology. “Over the coming and including BP Shipping, Chevron, NYK, Maersk, MSC,months we will be looking at the way we work and pursue CMA CGM and SK Shipping. Stolt Tankers is also ahow we can make best use of the latest technology and oppor- significant long-term customer, docking two of itsinformation systems available. DDW has continuously tunities in chemical tankers, Stolt Kiri and Stolt Sequoia, over theinvested in upgrading facilities over the years but with line with first three months of this year.the takeover by DP World, there will be a big focus on ourinnovation and the introduction of the latest technology strategy. The yard is winning business in other sectors,to improve operational efficiency.” however, and a notable visitor in the first quarter of the Rado year was the cruiseship AidaStella, the first contract Work has already started on a 35-year masterplan Antolovic, signed with Aida Cruises. The yard also undertookfor DDW, and the use of advanced IT systems is certain drydocking and repairs to two US Navy vessels.to be a central theme of this project. Mr Antolovic chiefobserves: “We need to have a vision of where we want executive, FPSO sectorto go, that sets out where we want to be in 35 years’ DDW The FPSO sector has long been one of DDW’s strengths and the yard is currently carrying out an FPSO The AidaStella in refurbishment and upgrade project for Bluewater dock in Dubai. Energy, which is scheduled for completion in the middle Cruiseship work of 2018. As part of this project, DDW is also fabricating is an important and installing the turret for the converted vessel. target market DDW has also signed a contract to build a turret for the Johan Castberg FPSO, which will be deployed in the North Sea for Statoil. This is the second order that the yard has received from SBM, after successfully delivering the world’s largest turret for the Prelude FLNG vessel. Also in the offshore oil and gas sector, DDW is working on a contract to build a jacket and wellhead platform for Technip FMC, with the end client being Dubai Petroleum. Elsewhere, DDW has completed and delivered transition structures for wind turbine towers for Lamprell, and also for a North Sea related project for Scottish Power. The yard is also building an HDVC platform for Borwin 3, for Petrofac. This project is expected to be completed around mid-2018. The rig repair market is increasingly important for DDW. In 2017, the company received 22 rig projects, a significant increase compared with 2016 levels. Already in the first three months of 2018, DDW has completed a further six rig repair and upgrade projects, with more booked in for later in the year. Mr Antolovic concludes: “There are positive signs for the future. We have had high enquiry levels so far this year, which reflects an improvement in market conditions, and we aim to capitalise on that trend to secure more long-term projects. The new regulations covering ballast water treatment and scrubber systems will also open up new opportunities for the yard.”TMS UAE Yearbook 2018/19 39
shipbuildiNg & shiprepairPositive areas of the business, and have got off to a good start in results for Nico 2018 as well.”The company’s shiprepair business improved Nico completed 57 drydocking jobs for varioussignificantly last year, while a number of recent third- clients in 2017, as well as more than 3,500 afloat repairparty service agreements should provide the basis for projects. As many as 120 riding squads were deployedfurther growth over the years to come to carry out work onboard ships at any given time. The company enjoyed continued support from leading dubai-headquartered Nico International, part shipowners and operators, including CMA CGM, of The Chalmers Group, saw a healthy level Maersk Line, Svitzer and National Gas Shipping of growth in the volume of work handled at Company (NGSCO), among others. its shiprepair yard facilities in Dubai, Abu Dhabi and Fujairah in 2017, as well as by its afloat and Growing demand voyage repair business. Mr Kumar comments: “The demand for repair and Prakash Kumar, general manager, says: “We maintenance jobs during voyages and while ships are at exceeded our budget forecasts, achieving improved anchorage has increased over the last 12 months and bottom line results, so the past year has been very there is clearly a significant upward trend. We will positive for us. We were able to achieve growth in all continue to develop long-term agreements and contracts with major vessel operating companies, as well as strategic alliances with equipment manufacturers to support this sector.” One challenging trend highlighted by Nico is that average port stays for cargo operations in UAE ports have reduced over the past year. This has meant that the window available to carry out repair and maintenance work has got smaller, requiring Nico to step up efficiency and productivity levels still further. Notable voyage repair projects undertaken by Nico in A WORLD OF % ! ! $! SERVICE &%\" %# The oceans may be vast, but ! ! we’re always close. 24/7 service TMs uae Yearbook 2018/19 centers around the world. % %% 40
shipbuildiNg & shiprepair2017 included the conversion of the Maersk Line vessels repair service provider with expertise in all disciplines. Nicoto run on marine gas oil (MGO) while they were at sea. Our workshops in Dubai, Fujairah and Abu Dhabi are International’sNico also completed lashing bridge modifications on capable of overhauling technically sophisticated riding squadsvoyage for four CMA CGM containerships. For the first mechanical equipment such as main engine components, have carried outquarter of 2018, Nico reports an increase in main engine turbochargers, fuel pumps and gear boxes, allowing the a number ofrepair jobs, both at the Fujairah anchorage and on company to target the upper end of the market.” significantvoyage, while there has also been a “promising” engine roomrequirement for more steel renewal jobs. Nico International has also entered into a number of voyage repair service agreements with third parties in recent months, jobs over theStaff increases including Dragon Marine Service of Turkey, Nishishiba past yearNico currently employs around 1,100 people, Electric, Jeumont Electric and Sunruiincluding 800 in Dubai, 250 in Fujairah and 50 in Marine Environment, extending itsAbu Dhabi. Staffing levels were increased by geographic range as well as thearound 100 across these three sites during 2017 marine and industrial equipment itto meet growing levels of demand for shiprepair can work on. According to Mrwork, as well as industrial shutdowns and oil Kumar: “Adding a variety of shiprefinery projects, markets that Nico is successfully equipment and services to ourdiversifying into. The company has also upgraded portfolio allows us to provide end-the skills of its riding squads by taking on more to-end solutions to our customers.qualified mechanics and fabrication teams with We plan to sign moreseafarer backgrounds. agreements of this type over the coming As well as investing in its human months, so watchresources, Nico continues to upgrade this space.”equipment solutions at its workshops.This includes acquiring more powerful “The demand forcraneage at its Dubai facility to allow repairs andit to lift pumps weighing up to 40 maintenance jobs ...tons, while there are plans to invest in has increased.machinery that will allow for in- Prakash Kumar, generalhouse re-tubing of coolers and manager, Nico Internationalcondensers. 41 Mr Kumar adds: “We areconstantly looking to strengthenNico’s position as a one-stop shopTMs uae Yearbook 2018/19
SHIPBUILDING & SHIPREPAIRDMC expands despite tough market conditionsMore businesses have joined the Dubai Maritime City New workshops and other facilities have recentlycommunity over the past year been opened by a number of well-known names, including Caterpillar Marine’s MaK Middle East, which Despite challenging market conditions, Dubai has a new medium-speed engine repiar and Maritime City (DMC) not only maintained maintenance workshop on site, and facilities for Expert its occupancy levels in 2017, but increased Marine United, Dubai Trading Agency, Stanford Marine them by 22% compared with the previous and Viking Lifesaving Equipment. 12 months. During the course of the year, over 90 new leases were signed, including a number with Customer satisfaction internationally recognised operators who became business partners of DMC for the first time. In Occupation of the main office block at DMC has also addition, three new Musataha agreements were signed increased, with the signing of 26 office leases in 2017. for new shiprepair plots, which will further expand the Another important measure of success was provided by technical cluster serving the shipping industry that a recent customer satisfaction survey. This indicated exists within DMC. that 88% of companies had a positive experience of being part of the DMC community. Ali Al Suwaidi, general manager, says: “We have42 TMS UAE Yearbook 2018/19
SHIPBUILDING & SHIPREPAIRmade good progress over past year and are developing Above: Ali Albig plans for the future. In particular, we are moving to Suwaidi, generaldevelop the commercial precinct within DMC, which manager, DMCincludes a mix of office, retail and residential facilities,and we aim to go out to tender for the first phase of the Left: Shiprepairrequired infrastructure later this year.” activity has increased at Work is also under way to expand the industrial DMC over thesector to accommodate shiprepair and related past yearcompanies currently based at Jadaf, in Dubai. Many ofthese are expressing interest in relocating to DMC, aims to transform the customer experience making itwhich is now working on plans to meet such demand. easier for companies with DMC to manage their tenancies. DMC is one of only a few companies in the “The process for transferring those companies who UAE that has opted for the full version of this new ITwant to be near shiplift facilities for docking and system from Oracle.undocking work is already being discussed, and plansfor the relocation of such businesses are being worked Currently DMC operates 1,270 m of wet berths andon,” says Mr Al Suwaidi. “It will be a challenge to 42 dry berths. Facilities include three shiplifts, withaccommodate all requirements, but we believe we can capacities of 700, 3,000 and 6,000 tonnes, as well as aoffer an attractive solution and we are working hard to number of warships. The company is now part of themeet the expectations of individual clients.” DP World group, following the latter’s acquisition of Drydocks World Dubai, which is responsible for runningShiprepair and related activities DMC. It is an independent entity, however, and has its own organisational and decision making structure.DMC believes it can offer a unique proposition forcompanies engaged in shiprepair and related activities. “We have made good progress over the past yearMr Al Suwaidi says: “They will find a cluster of and are developing big plans for the futureengineering and repair specialists here. This allows Ali Al Suwaidi, general manager, DMCcompanies to easily work together, and add value totheir respective businesses.” Over the past year DMC has taken steps to enhancethe way it interacts with its clients. In particular, it hasimplemented the new cloud-based Oracle CX suite.Covering sales, marketing and services, the new systemTMS UAE Yearbook 2018/19 43
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SHIPBUILDING & SHIPREPAIRSuperyacht success for Gulf CraftFocusing on niche markets foryachts and other leisureboats, the company hasbecome one of the leadingglobal players in this marinesectorGulf Craft, which operates shipyards in Ajman and Umm Al Quwain, as well as the Maldives,has an impressive track record Gulf Craft reports strong demand for its high-end superyacht designsbuilding a range of yachts and boats, from investments we have made upgrading ourits smallest vessel, the Oryx 27 cruiser, to shipyard sites in recent years,” says Mr Bamps. “One of the most significant recentthe Majesty 155, its largest superyacht to upgrade projects involved a Majesty 135 superyacht where we replaced the saloondate. Most of its vessels are destined for Gulf Craft include Majesty 125 and on the upper deck with a room. The owner saw this layout on another Majesty 135customers in the GCC region, although it Majesty 90 type yachts and various boats vessel and asked for this modification to be carried out on his superyacht.”is increasingly supplying clients in Europe, from across the range. Superyacht yardsSouth East Asia and Australia as well. The Majesty 175, currently under Last year Gulf Craft celebrated 35 years inLast year Gulf Craft delivered vessels of construction, is in fact a major milestone business, and remains one of the top ten superyacht shipyards in the world. Thevarious designs, with a similar level of for Gulf Craft, as it represents the company operates four yards. One in Umm Al Quwain, the largest, where the Majestyturnover to that achieved in 2016. The company’s first ever megayacht project, a Yachts and Nomad Yachts are being built; its original yard in Ajman focuses onmost notable project completed in 2017 market involving ships of 50 m and over. smaller craft, such as the Silvercraft and Oryx range; while a second facility inwas the second Majesty 155. Built to Construction of the 53 m long vessel is Ajman focuses largely on service and refit work. In addition, Gulf Craft has a yard indemanding technical standards and the well under way and is due for completion the Maldives which meets strong local demand for small leisure, fishing andultimate in onboard luxury, the 47 m long in 2019. Mr Bamps adds: “The Majesty passenger transport craft.Majesty 155 features a glass elevator, seven 175 will set new global standards as it is The wider Middle East market accounts for around 50% of Gulf Craft turnover,staterooms sleeping up to 16 guests and one of the very few projects in the world Europe/Russia and South East Asiacabins for up to nine crew members. that is being built completely using around 20% each, with the rest of the world the remainingAnother highlight of 2017 was the reinforced composite materials. It will also 5%. As Mr Bamps concludes: “We areunveiling of the Majesty 100, Gulf Craft’s be the largest yacht to be built in the UAE diversified both in terms of geography and thefirst superyacht to feature a sky-lounge. to such demanding standards, and it marks range of craft we produce. This is helpingFollowing its launch, Gulf Craft has our transition from being a boat builder to us to maintain a healthy business inreceived a number of orders for this model a fully fledged shipbuilder.” what are uncertain times generally.”from clients in the Middle East Gulf, As well as building newRussia, France and Australia. yachts, Gulf Craft has a thriving refit andOrderbook maintenanceErwin Bamps, Gulf Craft’s chief executive business. Theofficer, says: “Our orderbook is healthy at company servicedthe moment and we also have many close to 50 yachts andongoing discussions for the new Majesty boats in 2017, 20%100 design. We are currently building the more than in the yearfirst Majesty 175 megayacht while the before. “This upturn isMajesty 140, unveiled at this year’s Dubai largely due toBoat Show, was a resounding success, and thewe already have a model in build.” Othermodels currently under construction at“Our orderbook is healthy at the Erwin Bamps, moment and we also have many Gulf Craft chief ongoing discussions for the new executive Majesty 100 designTMS UAE Yearbook 2018/19 45
SHIPBUILDING & SHIPREPAIRThe floating dock at Mina Zayed iscentral to the company’s business modelTransforming ADSB into a up to around 50,000 dwt. Adjacent to the dock is a 430 m long world-class company quay, with a 12,000 m2 area behind it,Abu Dhabi Ship Building continues to build momentum in a which provides dedicated shipyardnumber of business segments, challenging international as facilities and workshops. The water depthwell as regional markets alongside this quay is 14 m, allowing work to be carried out on larger vessels.For many shipyards 2017 was a carries out a range of repair, refit and tough year. Abu Dhabi Ship maintenance services for naval craft. The ADSB is also busy in the shipbuilding Building (ADSB) in many ways company has established a dedicated sector, where it has demonstrated its bucked the trend, with increased Marine Support Services (MSS) group for capability for building complex navalvolumes and an improved financial delivering comprehensive Through Life vessels. Indeed it has been successful inperformance in its shipbuilding and Capability Management (TLCM) solutions, establishing itself as the regional marketrepair activities. primarily to the UAE Marine Forces, for leader for the construction of military craft. which it has signed a three-year MSS In the shiprepair and maintenance contract running through to January 2020. Flagship programmesegment, business at its floating dock inMina Rashid expanded, with the yard ADB carries out repairs to military Baynunah was a flagship programme forcompleting a total of 25 projects, six more vessels both at its Mussafah yard and in the yard, and involved the design,than the year before. the Mina Zayed floating dock. construction, commissioning and delivery of a series of six 72 m corvettes for theRecent projects During 2017 the floating dock’s average UAE Navy. In February 2017, the final occupancy rate was 77%. A spokesman vessel was handed over to the client.Notable recent projects have included the says: “Sterling performance was postedsupply and installation of a helideck with respect to turning around military The yard has also been working on theonboard a project cargo vessel, as well as vessels under tight schedules without so-called Arialah programme for the supplypipework, tank fabrication and hatch compromising on stringent military of two 67 m offshore patrol vessels for thecover modifications. Another major project standards. The same trend was seen with UAE’s Critical Infrastructure and Coastalinvolved refit work to a landing craft. In regards our commercial vessel clients, such Protection Authority (CICPA), inthis case the scope of work included engine as ADNOC and National Marine partnership with Damen Shipyard. The firstupgrades to increase its speed from 8.5 to Dredging Company (NMDC) as well.” in the series was delivered to CICPA in June11 knots, installing a new bow and 2017, and the second in February 2018.propellers, various alterations to the deck, Investment in the new floating dock,renewing the entire water-making system which measures 180 m x 30 m, has been ADSB also completed a contract withand the installation of a new knuckle central to ADSB’s business model. the Ministry of Defence in Kuwait toboom crane. construct a series of 42 m and 64 m The facility, which opened for business landing craft, the last of which was As well as commercial vessels, ADSB in 2016, has a lift capacity of 10,000 delivered towards the end of 2017. tonnes and can accommodate vessels of Work in progress includes the construction of high-speed interceptor boats for CICPA, due for completion by the middle of 2018, and the building of four more offshore support vessels. The yard is also building a 16 m limousine boat that is expected to be delivered later this year.TMS UAE Yearbook 2018/19 47
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