ShipbUilding & ShiprEpAir Albwardy Damen’s shipyard in the Hamriyah Free Zone, SharjahAlbwardy Damen other side of 2020 before we see any substantial improvement in the market for offshore vessel operators. I hope to see ourdelivers complex special ships offshore business pick up within the coming year, but it will take time for the offshore market to absorb surplus capacityThe joint venture company has strengthened its reputation as a and for that to be translated into a sustained upturn in repair andbuilder and repairer of sophisticated tugs and offshore vessels maintenance demand.”Operating shipyard facilities in Dubai, Fujairah and Sharjah, vessels drydocked and another 100 ships Network of facilities Albwardy Damen has been repaired on the quayside. Mr Seistrup says: “This volume of work, in terms of ship The company has a network of modern facilities within the UAE, and is busy with both newbuilding numbers was similar to that seen the continuing to invest in further upgrades.and repair activity over the past year. In previous year. However, the turnover per Most notably, Albwardy Damen is2017 the company completed a total of vessel is still dropping in line with the very building a new workshop in Dubaieight newbuild vessels, including three tough times being experienced by Maritime City (DMC).tugs, two fast crew supply boats and three shipowners.” “This will allow us to bring the qualitydredgers. and efficiency of our Sharjah yard to ourThe most significant delivery was the Mainstay work DMC customers,” says Mr Seistrup. “TheRT Raven, a truly unique vessel in many Liftboat work was a mainstay for the workshop will be our new Dubai base andrespects and the largest and most complex yard’s repair business last year, with six will also provide office space for our special-vessel built by Albwardy Damen to date. ships of this type repaired for various ised services, yacht repair and hydraulicThe 45 m long infield support vessel owners, ranging from simple dockings to teams, as well as DMC docking staff.”features DP2 capabilities and is designed complex leg repairs. The yard also Albwardy Damen’s main yard is locatedto operate up to 200 nautical miles from upgraded and converted another liftboat in the Hamriyah Free Zone, Sharjah, andshore for up to six months. The tug was for a European owner. features a covered build hall, ahanded over to its operator, KT Marine A large part of the yard’s business 5,200 tonne shiplift and eight dry berths,Services Australia, in January 2018. depends on the local offshore market and each 125 m in length. The new office andLars Seistrup, managing director, says: this is likely to remain under pressure for a workshop facility in DMC will operate“Our current orderbook is affected by the number of years to come yet. According to alongside this facility, together with adepressed newbuilding market, but it is Mr Seistrup: “I think we have to get to the workshop in Fujairah.still quite healthy, with one liftboat and “I think we have to get to the other side of 2020 beforethree tugs scheduled for delivery in 2018. we see any substantial improvement in the market forThe liftboat is a special vessel for local offshore vessel operatorsowner Aquadive, and is purpose designed – Lars Seistrup, managing director, Albwardy Damenfor the shallow waters in the Gulf area.” The yard’s shiprepair business alsoperformed relatively well, with around 150TMS UAE Yearbook 2018/19 49
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cLASSificATioN Dubai is now a strength and last year set a new record in designated DNV terms of participants attending courses. The DNV GL Maritime Advisory team has GL drone hub also been working with the UAE Government in setting up the region’s firstDigitalisation Research & Development Innovation is the future for DNV GL Centre, which is focused on smart shipping, digitalisation, Big Data andThe classification society is going thorough major changes to human capital development programmes.improve the way it works and delivers its services Indeed, over the past year DNV GL hasin 2017 DNV GL, which has its rolled out a number of initiatives making regional headquarters in the UAE, change over to DNV GL this year as well, good use of the latest technology. Dubai is enjoyed another very successful year in continuing its successful class transfer now a designated DNV GL drone hub, drive in this sector. and as a result more surveys, especially on tankers and jack-up platforms, have beenthe Middle East. The classification Prospects for the current year are performed at yards in the region. In addition, it has implemented IMO-society achieved a market share above promising. A spokesman for DNV G says: compliant electronic class and statutory certificates. These reduce the30% in gross tonnage terms for ships in “The first quarter of 2018 was a bit slower administrative burden for all stakeholders, are more secure, always up to date and canservice and, for the second year in a row, than the end of 2017, but that is not be accessed immediately through the My DNV GL service, the society states.secured around 90% of new tonnage uncommon. We are working on a series of Smart survey bookingordered by clients in the region. projects that will probably be realised very Also introduced over the last year is a smartDNV GL also strengthened its position soon, and as many rig owners are moving survey booking service that proactively notifies customers that a survey is due,in the offshore market, with a record their head office to Dubai this trend will proposes a scope of work, estimates travel and overtime costs upfront andnumber of jack-up units transferring over definitely increase business prospects in recommends the optimum survey location. DNV GL is in the process of developing riskto its class. It has recently been confirmed that sector as well.” based inspections for class surveys and these will lead to condition, rather than calendar-that a further series of jack-up units will Several shipowners in the Middle East based, surveys for both rigs and ships. are actively looking at the The spokesperson adds: “We are actively promoting the digital innovation possibility of ordering new ecosystem within the maritime sector in the UAE. In particular, we are giving start- vessels that will meet ups and other maritime entities immediate access to the global marketplace through future regulations and the DNV GL Veracity data platform.” deliver increased The classification society believes that its My DNV GL service, and its digital operational efficiency channels in general, will become increasingly important over the coming levels. DNV GL points years. “Our main strategic goal is building a customer-centric, digital class,” says Mr out that it is Becker. “With our strong focus on using new technologies, like drone surveys and frequently involved artificial intelligence, our clients can benefit from better planned, shorter and more in these discussions predictable surveys, resulting in less costs.” from a very early DNV GL is currently reviewing its regional operations and, in particular, is stage, delivering looking to expand its workforce and station network in Saudi Arabia. Its technical support Maritime Advisory unit has also expanded its local team significantly and based on its is looking to build up the pool of local maritime talent through an internship extensive programme in Dubai. experience inDubai is now a different markets.hub for drone The DNV GLsurvey work Maritime Academy in Dubai is going from strength toTMS UAE Yearbook 2018/19 51
Dry bulk shipping, commodities, ports, logistics and handling equipment news are all reviewed in every issue of IBJ. Established in 1981 as the leading magazine for the maritime dry bulk industry, IBJ includes regular Grain, Coal, Iron and Steel outlooks. The Bulker fleet is also tracked and a special editorial features programme coveringcommodities, technical and regional issues provides expert analysis and comment for IBJ's influential readership. To subscribe or advertise:www.ibj-online.com Tel: +44 (0)1691 718 045 E-mail: [email protected]
classificaTiOnTasneef looks to expand regional roleOne of the world’s youngestclassification societies,Tasneef, is already a growinginfluence on the regionalmaritime sceneDespite being established as “It is not easy to break into the market... But we are recently as 2012, Tasneef is making headway and I am confident that Tasneef will already making its mark, not in time be the first-choice society for shipowners in just on the UAE shipping the UAE and Arab worldindustry but across the GCC region. It has Waleed Al Tamimi, chief operating officer, Tasneefmanaged to achieve strong double-digitgrowth in the number of vessels under its maritime environment. “We were the first global presence.class in recent years, and provides a range society to apply the GCC Code, which we Mr Al Tamimi says: “Our main targetof services for both newbuilding projects helped develop,” he points out. “Thisand ships in service. The number of represents a big improvement in safety for the coming year is to grow the fleetTasneef-classed vessels now stands at regulations for smaller vessels, around under our class, gain more flag-statearound 100, and these ships include 1,200 of which are working in UAE approvals and extend the range of servicesgovernmental agency craft, as well as waters, and which are not covered by we provide.” Tasneef is, for example,commercial ships. existing IMO rules.” working closely with Abyss Solutions of Australia, which has developed technology Notable successes in recent times Tasneef is currently approved by a that combines ROVs and data analytics toinclude an agreement to place all vessels number of flag states, including the UAE, carry out detailed underwater hull surveys.operated by Abu Dhabi Ports and Sharjah Jordan, Lebanon, Morocco, Bahrain andPorts, as well as the UAE Navy fleet, under Oman. One of the priorities for the next “We have the know-how and they haveTasneef class. The society has also recently few years is to increase this number to the tools,” says Mr Al Tammi. “I see aprovided classification services to a series include other flag administrations with a great future for this technology as anof new LNG-powered tugs delivered to alternative to drydocking.”Drydocks World Dubai, a technologicallychallenging project that was one of thefirst of its type worldwide.Making headwayWaleed Al Tamimi, chief operating officer,says: “It is not easy to break into themarket, as all of the UAE fleet for instancewere previously flying other flags. But weare making headway and I am confidentthat Tasneef will in time be the first-choicesociety for shipowners in the UAE andArab world, not only because of ownefforts, but also thanks to the support wehave from our stakeholders andcustomers.” He believes that already, only a fewyears on from its establishment, Tasneef iscontributing significantly to the safety oflife at sea and protection of the UAETMs UaE Yearbook 2018/19 53
MARITIME SERVICESDubai headquarters Lukoil offers a wide range of marine lubricant products and is continuing to add to its portfolio to underpins Lukoil success meet shipping customer requirements. Last year it launched Navigo MCL Extra, a marine cylinderThe Moscow-based company’s marine lubricants lubricant designed specially for the new low sulphurbusiness has continued to grow in the region, thanks regulations that will come into force in 2020. This newto winning new business and the continued support product is a 40 BN marine cylinder oil for distillate,of its existing loyal customer base ultra low sulphur fuel oils and low sulphur heavy fuel oil applications. It has already been approved for MAN Lukoil has consolidated its position as one of the and Wartsila engines and is expected to help ensure largest suppliers of marine lubricants in the Lukoil is able to offer its customers the best possible Middle East over the past year. The company lubricant solutions leading up to the implementation of currently enjoys more than 30% of the regional the sulphur emissions cap. marine lubricants market and is the main supplier to many of the largest shipping companies in the area. Global headquarters During 2017, Lukoil achieved relative stability in its Lukoil’s base in Dubai is an important hub for the UAE operations, despite challenging market conditions. entire company, serving as the global headquarters for June Manoharan, Lukoil Marine Lubricants’ director, the company’s marine lubricants operations. Ms says: “Last year we made some modest gains and Manoharan explains: “The UAE has become a truly retained all of our existing customer base in the region, cosmopolitan destination in business and culture, and which is a great achievement. There are also some that is the reason for choosing the country as the positive market trends which augur well for the future. headquarters for our marine lubricants activity. It is We have seen some strategic investments being made in extremely easy to run a global business in the UAE as the region, which is encouraging for the industry.” we enjoy full government support in simplifying business procedures.” As well as marine lubricants, Lukoil also now offers industrial and automotive lubricants across the GCC through its Dubai hub.54 TMS UAE Yearbook 2018/19
MARITIME SERVICESPioneering executive wins She recalled how she came to the Middle Woman in Shipping Award East in the early 1990s, working initially for BP in both Oman and Dubai.The fourth annual The Maritime Standard has not just broken the proverbial glassAwards, held in October 2017, saw Lukoil ceiling in a largely male dominated industry. Then in 2010 she was approached byMarine Lubricants’ director June She has shattered it! Lukoil to set up a marine lubricantsManoharan win ‘The Maritime Standard operation in the region, and after rapidWoman in Shipping Award’, celebrating and Ms Manoharan accepted the award career progression, she currently overseesrewarding her amazing journey of success in gracefully and captivated the audience with the Lukoil Marine Lubricants business for thethe shipping industry. an emotional speech describing her Eastern Hemisphere, which stretches from professional life and development in the Africa to Australia. Having set up offices in Over the past 26 years, Ms Manoharan industry. Middle East, Hong Kong and Singapore, and representative offices in South Africa, India, Japan and China, the company has recently ventured into Australia as well. Ms Manoharan says: “When I first joined the industry, I had no idea where this voyage would take me. Yes, the journey has been long, unusual and often challenging, but it has taught me that there is nothing more powerful in life than self-belief and a can do attitude.” Her message to other women in the industry, is succinct: “Believe in yourself, negotiate for yourself and own your success. If you do not do it, nobody else will do it for you!” XXXOJDPVBFDPN ωXIFOJUDPNFTUP .\"3*/&*/%6453*\"- &/(*/&&3*/( XFBSFUIFTPMVUJPOϊTMS UAE Yearbook 2018/19 55
MARITIME SERVICES TheUmm al satisfaction with the original contract. Quwain “Getting the second contract is always a workshop huge vote of confidence,” adds Mr Saigal.ARC Group Also added to ARC’s portfolio last year was the fabrication and assembly of process skids. This included, structural steel, carbon and stainless steel pipe works, installation of oil filtering equipment (OFE), including the electrical and instrumentation items. Mr Saigal says: “We successfully built eight fuel gas skids for a major oil and gas producer last year and have now been awarded a contract for a further six units, work on which is currently in progress in our facility.” The group has two separate companies. ARC Engineering focuses on offshore, industrial and marine fabrication projects, while ARC Offshore and Supply Services (AOSS) carries out shipbuilding, industrial work and shiprepair activities. The operational focus is in Umm Al Quwain, although the company’s shiprepair teams undertake work at yards in both Abu Dhabi and RAK Maritime City, with up to 40 staff members on site at any time.sustains growth Humanresources ARC is committed to investing in its human resources and has a structured training programme aimed at upskilling its staff to improve team spirit andDespite challenging market conditions, the ARC Group’s yard in productivity. “One of our strengths is our workforce,” adds Mr Saigal. “We areUmm Al Quwain performed well last year proud that we show care andThe diversified engineering firm ARC consideration for our employees as they Group has enjoyed continued Nawal Saigal, represent the future of our group.” success over the past year. Nawal chief executive Mr Saigal points out that ARC Group officer of ARC maintains a debt-free structure, which is Saigal, chief executive officer, says: Group, with considered a strength in the present“The marine, oil and gas sectors of our his son Salil uncertain market conditions. He adds:operations have both done well. We “We have been careful not to over-extendrecently achieved a significant milestone by ourselves and only invest at levels that wenot only receiving our ASME ‘U’ and ‘R’ can manage. We are looking at the nextstamps, but going further and building our stage now with a focus on acquiring afirst set of three pressure vessels for an neighbouring piece of land in Umm Aloffshore client. This shows our technical Quwain.”capabilities and the commitment of our Services offered by ARC Group includeteam in aligning themselves to the structural steel and pipe fabrication, steelcompany’s strategic vision.” repairs, post-weld heat treatment (PWHT), blasting and coating, conversions andCertified pressure vessels shipyard consultancy. Its yard in Umm AlThese ASME and ABS certified pressure Quwain is just a 35 minute drive fromvessels were built at the company’s yard in Dubai and comprises a 10,000 sq mUmm Al Quwain and were delivered to enclosed workshop, 3,000 sq ft office, andthe customer, Unique Global Systems, in 35,000 sq ft of open yard with enclosedFebruary this year. The same customer has blasting and painting sheds.now placed a repeat order for a furtherseries of three pressure vessels, which will “The marine, oil and gas sectors of our operations havebe part of a PVHO-approved diving both done wellcompression system, demonstrating Nawal Saigal, chief executive officer, ARC GroupTMS UAE Yearbook 2018/19 57
MarItIMe servIcesIslamic P&I seeks to Marlink opens up in Fujairah expand its horizons Leading marine communications firmIslamic P&I has benefited from Dubai’s role as a regional hub, Marlink has opened an office in Fujairahand is now looking for additional services to provide to offer customers closer proximity for service interventions and support. Thethe only provider of P&I insurance Amir Mosadeghi, chief executive, Islamic P&I initiative is also expected to improve the services in the UAE, thanks to the time taken for the company to respond to support of the UAE government requests from logistics clients. and the Organisation of IslamicShipowners Associations (OISA), Islamic Marlink is planning further expansionP&I Club is looking at a number of of its logistics capabilities by setting upinitiatives to expand the range of services it warehousing for stock in the Gulf region.provides for Middle East-based shipping Company spokesman Knut Natvig says:companies. “We hope this will further improve our responsiveness to client requests from In addition, though, it is actively the oil and gas segment in the region andworking to broaden its horizons by make sure we are agile enough and quickreaching out into other regions. enough to meet their high end demands. We still see major opportunities and Amir Mosadeghi, chief executive, says: increased client connectivity“We are now getting more business done requirements in the region, and wethrough our South East Asia representative continue to expand our product portfolio,office in Jakarta. capabilities and market reach.” “We also now have a representative Over the past 12 months Marlink hasoffice in Athens that is looking to penetrate seen the maritime industry in the regionthe European market as well as facilitate embrace the process of digitisation toaccess to European reinsurers.” improve operational efficiency. “This is positive for Marlink as we offerChallenging conditions shipping, trade and economic activity connectivity and digital solutions which generally less clear cut.” can improve safety, crew retention andMarket conditions are challenging, Mr operational efficiency,” says Mr Natvig.Mosadeghi points out, although the By having its base in Dubai, Islamicsituation in the Middle East improved in P&I Club has been able to benefit from Marlink has recently signed up three2017, especially from the middle of the the UAE’s role as a regional hub. Mr new transportation clients for VSAT. “Asyear onwards as the oil price stabilised. Mosadeghi adds: “Port expansion, new software applications demand more rules and regulations in the shipping bandwidth and the use of connectivity He adds: “I hope that this trend industry, the 2020 vision and major such as video conferencing and filecontinues well into 2018. There are infrastructure developments, make the transfers continue to increase, it ispolitical issues in the region, however, and country, and in particular the city of important regional shipowners choose athe new sanctions applied after the US Dubai, an ideal regional base for maritime pipe big enough for their demands todaydecision on the Iran deal make any activities.” and for the future,” Mr Natvig concludes.judgements with regards the future ofNasco sees growth in superyacht sector quite damaging to the market overall.”Having had a presence in the Over the past year its marine for the time being marketregional market dating back to insurance business has demand is fairly constrained in Nasco’s regional centre inthe 1960s, Nasco Middle East is remained fairly stable, with only almost all areas.” Dubai handles a wide range ofhugely experienced in the local limited growth possible. marine business, includingmarine insurance sector. The Competition in the regional yachts and commercial craft,company offers hull and Company director Bimal marine insurance market is and in total it employs aroundmachinery insurance for a wide Bhatia says: “The market is not quite intense, with many small 120 people at its main office inrange of vessel types, as well easy at the moment, but we are brokers fighting for market the Burjaman Centre.as shiprepair liability insurance. holding our own. The share.It further specialises in high superyacht sector has proved to The company’s also has arisk cover, including piracy and be fairly resilient, and Mr Bhatia points out: “We relatively new office in the UAE,war risks, as well as cargo investments like Dubai Harbour are doing quite well in the UAE in Sharjah, which opened ininsurance. City offer significant scope for and Saudi Arabia, but it is a 2016, a subsidiary in Abu Dhabi, growth in this niche market, but tough battle.The level of and a reinsurance division in the competition at the moment is Dubai International Financial Centre (DIFC).tMs Uae Yearbook 2018/19 59
MaritiME sErvicEsHFW Dubai as the country falls right in the middle of bucks the trend the new maritime silk road. The Abu Dhabi project is a long-term venture by theWhile shipping generally may still be in the doldrums, HFW’s Chinese who are making significant investments in the UAE as they see this asbusiness in Dubai, and the Middle East generally, goes from a historically important strategic location for global maritime trade.”strength to strength The workload of HFW Dubai covers allLeading law firm HFW Dubai has HFW’s Dubai office shipping partners aspects of the maritime sector and extends been involved in a number of Richard Strub, Yaman al Hawamdeh across the whole supply chain, and ranges significant shipping-related projects and Tien Tai from disputes and crisis management in over the past year or so. For the maritime space to the financing of shipexample, the company represented One Belt, One Road initiative. Dubai and marine assets, ports and terminals,container line UASC in its reflagging and partner Tien Tai says: “This programme and logistics.mortgage arrangements in respect of its has certainly made an impact in the UAEfleet of container vessels, in preparation for Expansion storythe merger with Hapag-Lloyd in 2017.This work was coordinated by HFW Mr Tai adds: “Regionally we have a goodDubai and involved HFW Saudi and HFW expansion story to tell, with new offices inKuwait in respect of the vessels owned by Kuwait, Saudi and Beirut, and double-digitUASC. revenue growth last year. We are building on this expansion with an imminent HFW Dubai is also currently announcement of another new office in therepresenting a leading state-owned Chinese Middle East this summer 2018, located inshipowner with regards to its financing a new financial free zone, so it is a veryarrangements for the development and exciting time for HFW in the region.”automation of Khalifa Port Phase 2 in AbuDhabi. In its ship finance activities, HFW predicts that a new source of finance for HFW sees this as a reflection of the large bilateral deals will take the form ofincreasingly significant opportunities Chinese financial leasing. “A number ofarising in the UAE as a result of China’s Chinese lessors have all made visits to the UAE in March 2018 to meet with owners. This trend will certainly present opportunities for HFW in Dubai, as well as our Far East offices in Shanghai and Hong Kong,” states Mr Tai.Merger business dominates for WFW mortgages and leases. Mr Baird says: “Our UAEWatson Farley and Williams (WFW) had a busy year in2017 across the board in terms of financing and business has continued to growcommercial shipping-related matters and we cover the wider MENA region from our office here. WeFor WFW’s Dubai operation, co-ordinating global teams in Andrew Baird, partner, think that prospects are good.”business in 2017 was dominated Dubai, Singapore, Hamburg, WFW Dubaiby its extensive involvement in London and New York. This was To strengthen its regionalthe UASC/Hapag-Lloyd merger, a hugely complex undertaking development work, WFW is shipping team, WFW has madewhere the company acted for a and took over nine months.” working closely with the Bureau up a new partner this year ingroup of over 30 local and major International des Containers Mike Savva, who has significantinternational banks, Other notable projects for (BIC) and other interested maritime and offshore financerepresenting nearly all of the WFW over the past year have parties in the container sector. experience.lenders to UASC. included acting on a number of newbuilding projects in a In particular, it is looking to Mr Baird adds: “This is an This included work in variety of sectors including develop an internationally investment that reflects ourconnection with the consents tankers and dry bulk. It has also recognised register for title to positive outlook for the region as anecessary for the merger, and worked on behalf of a number containers as well as whole. We think that areas thatthe amendment and of international and local banks will keep us particularly busy in therestructuring of all lending lending to Oman Shipping, coming months will includefacilities to UASC. Andrew Baird, together with WFW’s London alternative lending andWFW partner, says: “We ran the and Paris offices. restructuring, while there is alsoproject from the Dubai office, the potential for some In terms of product and consolidation work and a significant uptick in terms of ports and terminals projects.“60 tMs UaE Yearbook 2018/19
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