TMS UAE Yearbook 2017-18

Expanding possibilitiesand raising expectationsSince 2006, Abu Dhabi Ports has been the pulse of trade in the emirate by managing everycommercial port in Abu Dhabi. By focusing on cutting-edge technology, world-class serviceand innovative partnerships, our entities are ensuring that everything is faster, safer andmore 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 areaof100sq km, is fully integrated with the 2nd fastest growing port in the world, making it one ofthe most attractive destinations for foreign direct investors to grow and expand their business.

CONTENTS16 CONTENTS10 INTRODUCTION24 05 The outlook for the UAE maritime hub remains positive30 PORTSTMS UAE Yearbook 2017/18 10 :DP WORLD After a difficult year, DP World is hopeful of a 17 recovery around the corner 16 GULFTAINER: There has been strong growth over the last year, and there may be more to come 21 :RAK PORTS Expansion plans are in place after record growth 23 ABU DHABI PORTS: New equipment and IT technology have been deployed at the Sharjah terminals SHIPPING & SHIPMANAGEMENT 24 :TRISTAR After a vessel acquisition programme, the group has a much higher profile in the region 25 :ISL The joint venture has achieved considerable success through being ‘asset light’ 27 GULF NAVIGATION: Diversification has pointed the way to a sustainable recovery 28 MARSHALL ISLANDS FLAG: The Dubai office is helping a Middle East growth drive SHIPYARDS 30 DRYDOCKS WORLD DUBAI: Despite a tough repair market, the yard is thriving, especially in the tanker sector 32 ADSB: Abu Dhabi Ship Building has expanded the scale and scope of its activities, with positive results 32 ALBWARDY DAMEN: An efficiency drive has helped beat the downturn 1

OneBahri www.bahri.saPioneering andintegrated transportsolutions

CONTENTS41 CLASSIFICATION43 45 36 CLASS SOCIETIES: The UAE remains an important centre53 for several of the world’s major class societies54 TERMINALSManaging Director & Publisher: 41 AJMAN PORT: The port has seen significant investmentTrevor PereiraEditor: Clive Woodbridge LAWManager-Marketing & Public Relations:Ammaar Murtaza Moosa 42 :FICHTE The law firm has been strengthening its corporateDesign and Production: Nick BlaxillPublished by: The Maritime Standard FZE team with two new partnersPO Box 25980, Dubai, UAE. 43 :INCE & CO After celebrating its tenth anniversary, the Dubai office is looking for fresh challenges 45 :EMAC The Emirates Maritime Arbitration Centre has brought a new and much needed capability to Dubai MARITIME INDUSTRIES 47 :COSCO The Chinese group has been raising its UAE profile 47 MCQUILLING: The shipbroker’s move into Dubai has been a significant success 48 :INSURANCE UAE-based ventures are spreading their wings to reach an expanded customer base 49 AL SAFINA SECURITY: Piracy risks underline the importance of staying vigilant 49 :DTA The group has invested in the port agency business 51 :ARC GROUP A former managing director of Drydocks World is achieving success with his latest venture 53 CENTRAL SHIP MANAGEMENT: The new venture is using its founder’s experience to stand out from the crowd AWARDS 54 TMS 2016 AWARDS: A night to remember Tel: +971 4 380 5556 Copyright © 2017 The Maritime Standard. 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.TMS UAE Yearbook 2017/18 3



introductionOutlook stays positivefor UAE maritime hubthere are a number of indicators that suggest the uAE is dubai is, moreover, ranked the fifthgaining momentum as a leading centre for the maritime best maritime city in terms ofindustries, guided by strategic governmental decisions attractiveness and competitiveness, behind only Singapore, oslo,Above: Container T he uAE has clearly set out its against five criteria: shipping, finance copenhagen and Hamburg.traffic at Jebel Ali stall to become one of the and law, maritime technology, portsincreased in the world’s leading maritime and logistics, and overall dubai is expected to rise higherfirst three months hubs. the national attractiveness and competitiveness. still, now that it has broken into theof 2017 government, as well as those of this objective analysis was top 10 worldwide. indeed, an expert individual emirates, especially dubai supplemented by a survey of more assessment within the survey predicts and Abu dhabi, have taken steps to than 250 industry experts from that the city will continue to grow in provide the infrastructure, both around the world. stature and will become the sixth most physical and organisational, to enable important maritime centre by 2022. this to happen. Leading maritime centre HE Sultan Bin Sulayem, chairman the approach is having While, as far as the Middle East, india of dubai Ports, customs and Free considerable success. dnV GL and and Africa are concerned, dubai has Zone corporation, says:“this oslo-based Menon Economics confirmed its status as the leading excellent achievement is due largely recently published the third edition regional maritime centre, the city has to the unlimited support of our wise of the influential The Leading Maritime strengthened its global position leadership in developing a safe, Capitals report, which benchmarks compared with the 2015 report, sustainable and diverse maritime the world’s top maritime hub cities moving up from 13th to 10th overall. environment and providing a competitive, comprehensive andAn expert assessment ... predicts that the city [Dubai] will continue to attractive investment climate, whichgrow in stature and will become the sixth most important maritime are the driving forces behind dubai’scentre by 2022. fast and smooth transition to the phase of‘post-oil economy’. As the results show, and considering the competitive advantages of our local maritime cluster, we are particularly adept at meeting the needs ofTMS UAE Yearbook 2017/18 5

@jebelalipowww.dpworld.ae

introductionregional and international maritime Abu dhabi, strengthening its position Abu Dhabi that has proved highly popular sinceindustry leaders through our as a thriving maritime hub in the Shipbuilding it opened during 2016. the twoadvanced infrastructure and world- Middle East, Africa, and South Asia commissioned a companies are planning to work moreclass maritime services and logistics.” (MEASA) region.” new floating dock closely together in future to ensure in 2016 that they remain well placed to meet dubai performed well against there is ongoing investment market demand for larger vessels andseveral key indicators, such as elsewhere in the uAE port sector. offshore structures especially.competitiveness and attractiveness, Most notably, perhaps, capacity hasmaritime services, legal expertise, been boosted at Sharjah’s two ports, Smaller shipyardsmaritime insurance, and finance, Khorfakkan and Mina Khalid, whileamong others. rAK Ports is expanding bulk handling Smaller shipyards, such as Grandweld facilities at Saqr Port. A new tanker and Albwardy damen, continue to HE Bin Sulayem concludes:“our berth for VLccs has also opened up at thrive. As an example, Albwardystrategy, which centres on the port of Fujairah. damen has just signed a contract toinnovation, knowledge and smart build a new tug for Saqr Port in thetransformation, has accelerated the Markets slowdown uAE. Alongside this latest order,organisation, development and Albwardy damen is also currentlypromotion of the local maritime Business has been tough for all ports building three large rotor tugs and asector. We continuously invest in the over the past year, as the shipping self-propelled jack-up barge, as wellprovision of more advanced industry has struggled with as some smaller ASd tugs and cutterinfrastructure, the development of overcapacity and a slowdown in key suction dredgers.policies and integrated regulatory markets such as china. However,frameworks, and further there are some positive signs that a Albwardy damen has plans toenhancement of our maritime sustained recovery is just around the invest in a new facility at dubaicapabilities – all of which will secure corner. over the first quarter of 2017 Maritime city (dMc), and this site isdubai’s leading position on the there was return to growth at dP likely to be an increasingly importantglobal maritime map.” World’s flagship Jebel Ali terminal in focal point for the development of the uAE, where throughput was shipbuilding and repair services. dubai’s Jebel Ali gateway and 3.7 million teu, 1.8% up on the there is already an important clusterKhalifa Port in Abu dhabi are at the equivalent months of 2016. of companies based here, includingheart of the drive towards maritime Goltens, Grandweld, dubaihub centre success. Both will benefit Shipyard capacity, for both Shipbuilding and Premier Marine.from major investment programmes newbuildings and repair, is central toto boost capacity over the next few plans to develop a maritime hub Speaking to the Maritimeyears. At Jebel Ali, work is well under within the uAE. drydocks World dubai Standard, Ali Al Suwaidi, generalway on ct4, which will facilitate has been investing in new tugs and manager, dMc, says:“We are lookingaccess for the largest container cranes to better meet customer to expand and we plan to invest tovessels afloat, while at Khalifa Port a requirements, while Abu dhabi enhance the dry berths and installjoint venture with cosco Shipping Shipbuilding has a new floating dock better facilities that will reduce thePorts will see a new container operating costs for companiesterminal open by 2020. Moreover, operating within dMc. theinvestment in cranes, additional quay government aims to developspace and dredging will continue to maritime industries in dubai andboost capacity at the existing dMc is a key part of that strategy.”terminal. Furthermore, Abu dhabiPorts is now marketing the largest through various financial andport-centric free zone area in theMiddle East to the European market. captain Mohamed Juma AlShamisi, chief executive of Abu dhabiPorts, says:“the Khalifa Port Freetrade Zone (KPFtZ) is a milestone onAbu dhabi Ports’roadmap of success.Fully integrated with Khalifa Port, theFree trade Zone is poised to becomethe future of trade in the emirate ofOur strategy, which centres on innovation, knowledge and smarttransformation, has accelerated the organisation, development andpromotion of the local maritime sector. – HE Sultan Ahmed Bin Sulayem, Dubai Ports, Customs and Free Zone CorporationTMS UAE Yearbook 2017/18 7



introductionother incentives, dMc plans to attract economic sustainability and growth company (nGSco), in which Adnoc Ali Al Suwaidi,new businesses in shipbuilding and in the emirate. owns a 70% stake, will remain a DMC, generalrepair, and other activities, including separate company. Adnoc intends, managershipowning and management, to set the uAE remains a key centre for however, to transfer its nGScoup their base within the centre. dMc is regional shipping companies, which shareholding to the new company,currently renovating two floors within have chosen either dubai or Abu and integrate its operations tothe main office building and these dhabi as their base. Many of these are maximise potential synergies.should be available to rent shortly. going through exciting periods of investment and expansion. tristar, Shipping companies “What is the advantage of setting which acquired Eships last year, hasup in dMc?\" asks Al Suwaidi.“the taken delivery of a series of new one of the biggest shipping companiesmain selling point is the availability of product tankers and is also actively that is operationally based in the uAE isan already existing network on the acquiring secondhand tonnage, the united Arab Shipping companysite. companies can find suppliers, as while Gulf navigation has a series of (uASc).the container operator, whichwell as potential customers, close by.” tankers on order in South Korea. has recently expanded its fleet of container vessels with the introduction Last year occupancy rates at dMc there are plans for rationalisation of a series 18,000 teu capacity, fuelincreased by 10% compared with 2015 within the local shipping business, efficient ships, has recently completed itslevels.“this reflects the strength of the which could strengthen its global merger with Hapag-Lloyd of Germany.offer here,”adds Al Suwaidi.“We strive profile. Adnoc, for example, has the combined fleet will comprise overto capitalise on the strengths of dubai announced its intention to 230 vessels, with a total capacity ofas a regional and global maritime hub, consolidate the operations of three of 1.6 million teu that will transport over 10as well as contribute to the emirate’s its shipping, marine and services million teu a year on global trade lanes.efforts to create a dynamic urban companies to create a single entity.lifestyle for the maritime community. the Abu dhabi national tanker According to Jorn Hinge, presidentthis can be achieved through the help company (AdnAtco), Petroleum and chief executive of uASc:“this is aof partners in various components of Services company (ESnAAd), and major milestone in the history of bothour operations.” Abu dhabi Petroleum Ports companies as we continue to evolve to operating company (irSHAd) will be meet customer needs and adapt toDMCA anniversary integrated with the aim of increasing market conditions. We will be ready to efficiency and optimising the use of deliver a number of important addedthis year the dubai Maritime city resources and assets across their benefits to customers, including anAuthority (dMcA), founded in 2007, various operations. extensive global network, now withcelebrates its 10th anniversary. added focus on the Middle East.\"”during the last ten years dMcA has Work on consolidating these threehelped bring about a radical change operating companies into a single For the immediate future, the twoin the local maritime sector through a marine and services company is under companies will continue to operateseries of industry initiatives and way, under the guidance of an independently, as Hapag-Lloyd andregulations that support its aim of Adnoc-appointed steering uASc. Hapag-Lloyd plans to establish acreating a safe investment committee. the integration is expected regional headquarters for the Middleenvironment and reaffirming dubai’s to be complete by the end of 2017. East, and this is expected to be inposition as an international maritime dubai.hub. dMcA works to build strategic the national Gas and Shippingpartnerships with governmentagencies, private businesses and We are looking to expand and we plan to invest to enhance the dryother stakeholders in order to create berths and install better facilities that will reduce the operating costs.a vibrant maritime sector and so drive – Ali Al Suwaidi, DMCTMS UAE Yearbook 2017/18 9

portsDP World risesto the challengeJebel Ali is being expanded with a new terminal that will boost capacityto meet demand from shipping line customers10 TMS UAE Yearbook 2017/18

portsT here is no doubt that 2016 compared with the 15.6 million teu As well as reduced trade levels, was a problematic year for recorded the year before. and a contracting liner shipping ports across the Middle East. base, the drop in throughput at But Dp World’s UAE business Mohammed Al Muallem, Dp Jebel Ali partially reflects a focus byis now cautiously optimistic that World senior vice president and Dp World management on securingrecovery is around the corner managing director, UAE region, says: higher value container cargoes. As “there is no hiding from the fact a result it has decided not to handle Dp World’s Jebel Ali port facility that 2016 was a difficult year, with lower yield cargoes, resulting inremains by some considerable shipping lines facing extreme lower volumes, but higher revenuesdistance the most important problems, leading to the formation per teu at Jebel Ali, it is claimed.container port in the Middle East. of new alliances and someLast year the port handled around withdrawals from the market, and Signs of recovery The port of Jebel14.77 million teu, over 10 million teu contracting trade volumes with Ali: the biggest inmore than its nearest regional China and other key markets there have, in any case, been signs the Middle East forcompetitor. slowing down. Despite the that a limited recovery in container traffic difficulties, because of the efficiency throughput volumes is under way. Nonetheless, after several years drives that we implemented, we In the fourth quarter of 2016, Jebelof sustained growth, in 2016 Jebel performed relatively well, both in Ali handled 3.7 million teu, justAli’s container throughput the UAE and globally.” 0.7% less than in the equivalentcontracted, falling by 5.3%TMS UAE Yearbook 2017/18 11



portsperiod of 2015, and business inthe first quarter of 2017 hascontinued that positive, improvingtrend. Despite the setbacks, Dp Worldcontinues to invest in Jebel Ali toensure it has the capacity requiredby its shipping lines customers bothnow and in the future. over thecourse of 2016, 500,000 teu ofcapacity was added to both Jebel Aliterminal 2 (t2) and terminal 3 (t3),taking the port’s total capacity to18 million teu annually by the endof 2016. A further 1.3 million teu ofcapacity is also due to come onlineas a result of expansion at t3 in thesecond half of 2017. Meanwhile work continues at thenew terminal 4 (t4) development,where a container terminal is beingcreated on a reclaimed island,offshore the port. originally the firstphase of this project was due tostart operations in 2017, but giventhe slowdown in throughput DpWorld management has decided todelay implementation until 2018.Under phase 1, Dutco Balfour Beattyis developing an operational yardarea with a quay length of 1,200 m,and BAM International Abu Dhabi isbuilding a 400 m bridge andadjacent causeways, and the 2.2 kmquay wall with an alongside depthof 18 m designed to accommodatethe largest mega container vessels.Jebel Ali growth Mohammed Al is getting under way. When it is to initiate remote control crane Muallem, DP ready, this will be one of the most technology at t3 to enhanceWhen phase 1 is complete, terminal World senior vice advanced terminals anywhere in the productivity levels as well as driver4 will add over 3 million teu, taking president and world, with high levels of comfort. the company is also nowJebel Ali port’s total capacity to in managing automation and performance in introducing the remote controlexcess of 22 million teu. At that time director, UAE terms of productivity.” systems at t2, although this willthe port will be equipped with at region enable the remote operation of yardleast 115 cranes with a total quay Dp World has been working with cranes only.length of around 11,000 m. A ABB, which is providing automationfurther phase 2 of t4, which will be and remote control technology for “We hope the t2 remote controldeveloped in line with market 12 ship-to-shore cranes and 35 room will be operational this year,demand, will more than double automatic stacking cranes at t4, and while it will allow drivers tocapacity to 7.8 million teu, adding following on from a similar project remotely control yard cranes only toanother 1,000 m of quay. When it is ready, T4 will be one of the most advanced terminals Mohammed Al Muallem adds: anywhere in the world, with high levels of automation and“While the operational start date performance in terms of productivity.has been put back, constructionwork continues at t4. Indeed, the – Mohammed Al Muallem, DP Worldfirst of the huge new quaysidecontainer cranes, the biggest oftheir type in the world, haverecently arrived and commissioningTMS UAE Yearbook 2017/18 13



portsbegin with, we hope to extend this fluid and over the next year we will as projected by respected analyst The port of Jebelto ship-to-shore cranes as well in be looking to consolidate and Drewry shipping. Ali: the biggest inthe future,” says Mohammed Al monitor what is happening,” says the Middle East forMuallem. Mohammed Al Muallem. “this year HE sultan Ahmed Bin sulayem, container traffic has started well, and the build-up to Dp World Group chairman and chief the investments in capacity and Expo 2020 is likely to give local cargo executive, comments: “ourtechnology that have been made flows a boost from 2018 onwards. significant cash generation andmean that Jebel Ali is the only port But for everyone, survival has to be investment partnerships leaves usin the region that can accommodate the main priority in the immediate with a strong balance sheet and theall of the new, multi-line shipping future and we have to respond flexibility to capitalise on thealliances, and their new generation cautiously to that market scenario significant growth opportunities incontainerships of up to 21,000 teu where shipping lines are looking at the industry.”size. “the strategy that we have every element of their costs.”pursued for the past 15 years, of Shareholder valueinvesting in infrastructure and Globally, Dubai-headquartered Dptechnology, has worked and we are World had a positive year in 2016, “overall we continue to believe thatnow in a very favourable position,” achieving a notable milestone when a portfolio which has a 70%claims Mohammed Al Muallem. net income from its international exposure to origin and destination ports portfolio topped more than cargo, and 75% exposure to fasterFlexibility Us$1 billion for the first time. growing markets, will enable us to revenues were up by 4.9%, while on a deliver enhanced shareholder valueHe adds: “t4 will help us as alliances like-for-like basis EBItDA profitability over the long term. While 2017 isget bigger and it becomes more of a was 6.6% higher than in 2015. expected to be another challengingchallenge to accommodate them all year for global trade, we have madein one place, in one terminal. t4 will Containerised revenue per teu an encouraging start to the year andgive us the flexibility we need to grew by 4%, and total revenue per we expect to continue to deliverreally add value for the shipping teu by 3%, also on a like-for-like ahead-of-market volume growth.”lines in their revised alliance basis. the adjusted EBItDA margingroupings.” for the full year reached a new all- Our significant cash generation and time high of 54.4%, reflecting Dp investment partnerships leaves us with a once the Us$800 million t4 is World’s acquisition of the Jebel Ali strong balance sheet.operational, Dp World seems likely Free Zone last year. Cargo volumesto take a rest from major were also up, by 3.2%, higher than – HE Sultan Ahmed Bin Sulayem, DP World Groupinvestments at Jebel Ali for a while. the full year global average of 1.3%,“the market is very dynamic andTMS UAE Yearbook 2017/18 15

portsAbu Dhabi Portsgrowth continuesthe developer, operator and manager of the emirate’s port around 1.54 million teu last year,facilities, as well as the Khalifa Industrial Zone Abu Dhabi has benefited from continued(Kizad), Abu Dhabi ports has experienced continued growth investment. towards the end ofand success over the past year, with recent deals suggesting 2016, ADp’s terminal operatingeven more is still to come subsidiary, Abu Dhabi terminals (ADt), announced the arrival of F or Abu Dhabi ports (ADp), more than 70% of the emirate’s three of the largest ship-to-shore 2016 was a year of customs revenue and 3% of its non- quay cranes in the world to considerable achievement oil GDp. accommodate growing volumes with several notable and demand at KpCt. milestones being reached. the Captain Mohammed Juma Al company posted a 152% increase in shamisi, ADp chief executive, says: Gantry cranes net profits, and a 90% increase in “trading conditions in 2016 were EBItA, compared with 2015, as well tough, but we still managed to the latest additions complement as increasing market share in all increase our container throughput by the existing nine quayside gantry business sectors despite the global around 2%, whereas other ports in cranes already operational at the slowdown. During 2016, ADp the region saw a decline in volume. facility, providing capacity of recovered all the accumulated We expect similar market conditions 600,00 teu a year. losses incurred since the business’ in 2017, with volumes stabilising.” inception in 2006, and contributed their delivery, together with 10 the Khalifa port Container new automated stacking cranes, terminal (KpCt), which handled completes phase 1 of KpCt, giving it an annual capacity of 2.5 million teu overall.16 TMS UAE Yearbook 2017/18

portsInvestment is beingmade to enhancefacilities at Mina Zayed Further expansion of container Captain Mohammed Juma Al port FtZ within KIZAD, increasing Our generalterminal infrastructure at Khalifa Shamisi, ADP chief executive the size of the free zone byport is on the way, following the 100,000 m2. Within the additional cargosigning of a major container port, which will be one of the largest space that has been allocated thereterminal concession agreement facilities of its type in the Middle are plans for a new business park business iswith Cosco shipping ports of China. East. and additional free zoneADp and Cosco shipping ports have warehousing, along with a light performingestablished a joint venture Expansion work industrial unit cluster.company, majority controlled by very well,Cosco, that will develop and to expand facilities at Khalifa port, the Khalifa port Free Zone facilityoperate a new deepwater container ADp has awarded a contract to offers low utility costs, 100% foreign with a 16%terminal in the port, the first phase National Dredging Company (NDC) ownership options, the ability toof which is due to open in the in Abu Dhabi, which will add repatriate all capital and profits, upturn lastsecond half of 2018. the new 1,000 m of quay wall and deepen competitively priced shipments andterminal will have 1,200 m of quay the main access channels and efficient customs procedures, year.with an alongside depth of 18 m, turning basin from 16 m to 18 m. among other benefits. Currently theallowing it to handle the world’s the area available for cargo Khalifa port Free Zone is home to – Captlargest containerships. handling will also be increased by eight logistics companies and four Mohamed 600,000 m2. industrial firms, and negotiations Initially container handling Juma Alcapacity will be around 2.5 million In response to growing demand Shamisi,teu a year, rising eventually to for free zone space adjacent to the3.6 million teu annually, with a port, ADp has introduced Khalifa ADPfurther planned increase in quaylength. the venture will be knownas Khalifa port Container terminal 2and the concession will last for 35years, with an option to renew forperiod of five additional years. Alongside the containerhandling facilities, Cosco shippingports will establish a 270,000 m2container freight station at KhalifaTMS UAE Yearbook 2017/18 17



portswith a number of other interested As a further boost to cruise Khalifa Port has Having achieved success locally,parties are under way. prospects, ADp has recently handled over ADp is now looking to widen its launched the first dedicated cruise 5 million teu since horizons and operate facilities one of the biggest ongoing beach and eco-tourism stopover in 2012 outside of Abu Dhabi. In support ofprojects in the Khalifa port Free the Middle East Gulf, called sir Bani its strategic partner, Emirates GlobalZone follows an agreement signed Yas Island, which has already proved We have Aluminium, ADp has signed its firstearlier this year between ADp and a huge success. Captain Al shamisi tripled the international management servicesKhalidia International shipping to adds: “there is so much interest size of our agreement with Guinea Aluminaset up a third-party logistics (3pL) within the cruise industry in calling marine Corporation to manage and operatewarehouse representing a total in Abu Dhabi, especially after the services a cargo terminal at port Kamsar ininvestment of AED80 million. the opening of sir Bani Yas island. We operation. the republic of Guinea. thewarehouse will be developed on a will continue to see an upward trend arrangement will strengthen the47,000 m2 plot of land and will have in cruise activity, and the opening of – Capt supply chain for the movement ofa total capacity of more than 33,000 attractions like the Louvre will add Mohamed bauxite from Guinea to Abu Dhabi,pallet positions. the warehouse will further value in this context.” keeping the UAE at the forefront ofhave a cold store capable of keeping Juma Al the aluminium manufacturinggoods at -24 deg C, as well as a other highlights of 2016 included Shamisi, sector.temperature-controlled dry cargo further investment in the fleet ofstore. the new logistics facility is tugs operated by ADp subsidiary ADP ADp is also working on a jointexpected to be completed by the safeen. Four new 75-tonne bollard venture with Canadian steamshipmiddle of 2018. pull tugs are now based at Khalifa Lines, one of the word’s biggest bulk port and can support the berthing of transhipment specialists, toCommercial port latest new generation 18,000 teu establish a facility in Guinea that will class container vessels. “We have enable larger bulk carriers toWhile investment in recent years has tripled the size of our marine transport bauxite to the EGA berthlargely been focused at Khalifa port services operation,” says Captain at Khalifa port.and its container handling and free shamisi. “safeen is becoming a veryzone facilities, ADp has also taken strong company.” Fujairah agreementsteps to enhance operations atZayed port, Abu Dhabi’s oldest Most recently, Abu Dhabi portscommercial port. Last year ADp (ADp) has signed a 35-yearsigned a contract with Abu Dhabi concession agreement to develop,ship Building for the construction of manage and operate the port ofa shiprepair facility, including a Fujairah in the UAE. the dealfloating dock, with phase 1 of the provides for ADp to developproject also featuring a 430 m long 1,000 m of quay, deepen all existingquay wall and 12,000 m2 of yard berths at the east coast port tospace. the company has further 16.5 m, to increase capacity andacquired additional general cargo allow for the arrival of larger vessels,and ro-ro handling equipment, and build around 300,000 m2 ofincluding forklift trucks, terminal additional storage space.tractors and trailers, and mobilecranes for Zayed port. As well as carrying out infrastructure works, ADp will also Captain Al shamisi says: “our invest in equipping Fujairah withgeneral cargo business is post-panamax ship-to-shoreperforming very well. We handled quayside gantry cranes, rubber-more than 17.8 million tonnes of tyred gantry (rtG) cranes and newgeneral cargo and bulk in 2016, a It systems. ADp will start16% upturn.” developing the new berths and yard areas in 2018. the additional cranes ADp has invested heavily to are due to be operational in 2021.expand and enhance cruise facilitiesat Mina Zayed to accommodate a Commenting on the importantsignificant increase in demand, with new deal, Captain Al shamsi says:the number of cruiseships calling “this significant investment will seeover the 2016/17 season increasing ADp share best practices with portby 21%. overall, the new passenger of Fujairah, which is one of the mostterminal received 137 cruiseship important economic andcalls, 10 of which visited Abu Dhabi commercial ports operating in thefor the first time, with cruise UAE, and will further complementpassenger traffic rising by around existing services offered at both8% compared with 2015/16. Khalifa port and Zayed port.”TMS UAE Yearbook 2017/18 19



portsExciting times established a new free zone areabeckon for offering options for supply chainRAK Ports management, storage and manufacturing. this has direct accessDuring 2016, rAK ports achieved unprecedented levels of to the port zone and its quays.traffic and plans for major infrastructure expansion have nowbeen put in place to meet demand More recently, 2017 has seen the establishment of the rAK MarineDue to the T hroughput via saqr port, years, a major capacity expansion training Institute within rAK ports toincreases in which was already the major plan was recently announced. this meet the growing demand fordemand at port in the Middle East for the will add two deepwater berths specialist marine training in ras AlSaqr Port in handling of materials for the capable of accepting Capesize Khaimah and the Northern Emirates,recent construction industry, and one of the vessels. the project, which will take which has an expanding marineyears, a largest bulk-handling ports anywhere place in two phases with a scheduled community. Having the Marinemajor in the world, increased by 6.3% in completion date in April 2019, will training Institute located in ras Alcapacity 2016 compared with 2015. this include dredging the seaward side of Khaimah means that rAK port clientsexpansion represented a total additional volume the existing breakwater to a depth of and their staff can have their trainingplan was of approximately 3.3 million tonnes 18 m, the construction of 700 m of needs met locally, rather than havingrecently of cargo, taking total throughput at additional quay wall, a reclaimed area to seek the required training furtherannounced saqr port in 2016 to 55.3 million 130 m wide between new and afield. tonnes. existing quay structures, and a 250 m revetment at one end of the new Training courses this growth comes on the back of quay wall. steady increases seen over the last the Institute will be based initially at five years, with throughput doubling Dredging saqr port, and elements of the over this period. the additional cargo training will also be hosted at Al Jeer handled by the other four ports in the It is estimated that approximately port, which is the most northerly port rAK ports portfolio takes the total 1.3 million m3 of the sea floor will be of UAE. All the courses will take place tonnage handled by the group in dredged, and approximately with the cooperation and 2016 to well in excess of 60 million 1.7 million m3 of material will be involvement of the rAK Civil Defence tonnes. required for the land reclamation fill. Department. Due to the increases in demand Additionally, the city-centre Courses on offer include the stCW experienced by saqr port in recent located ras Al Khaimah port has 2010 (International Convention on standards of training, Certification and Watchkeeping for seafarers 1978) Basic safety course and courses on first aid, security, fire-fighting, oil spills and hazardous cargo awareness. the Institute also offers bespoke courses based on specific client needs, and has already rolled out specially tailored courses in response to requests from the local marine community.TMS UAE Yearbook 2017/18 21

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portsGulftainer invests to terminal (KCt), including the introduction of a new terminal operating system (tos) and the acquisition of additional handling equipment. At sCt, Gulftainer has added two new ship-to-shore cranes, resurfaced areas of the container stacking yards and expanded container stacking areas.“these enhancements have enabled the terminal to cater for larger vessels and positively impacted the performance rates on vessels calling at the port,”Dalgaard suggests. sCt was also chosen to launch the new Marine and Container Handling (MACH) tos, which is expected to lead to a significant further increase in productivity levels at the terminal.enhance UAE terminals Computerised controlNew equipment and It technology have been deployed by MACH provides computerised controlthe global terminal operating group at its sharjah terminals of the movement and storage ofover the past year containers in and around the terminal.“this system is a majorAbove: New cranes S harjah-based Gulftainer Flemming Dalgaard, Gulftainer chief development in how we operate ourhave been recorded a strong executive officer terminals and provides a foundationinstalled at performance in 2016, for further automation includingSharjah Container registering a container and we expect to see them translate Internet of things (Iot), predictiveTerminal volume of more than 6 million teu into further growth in container analytics and mobility,”says Dalgaard. across its global portfolio of volumes in 2017,”says Dalgaard.Our strong terminals. Flemming Dalgaard, chief In addition, Gulftainer is makingperformance executive, observes:“While shipping Gulftainer continues to improve changes within its Khorfakkanamidst a markets around the world have been and develop its facilities in the UAE to terminal to allow it to move fromchallenging affected by overcapacity, as well as meet the requirements of its shipping being primarily a transhipment hubglobal the slowdown in China and Europe, line customers, who are deploying to also functioning as a gatewayenvironment our strong performance amidst a newer and larger ships by boosting terminal for local and regional traffic.is an challenging global environment is an available terminal capacity to handle the engineering team at KCt has, forindication indication of our ability to adapt to higher volumes per call. over the last instance, recently developed a newof our economic volatilities and year, the company has worked closely specialised piece of crane equipmentability to fluctuations.” with the sharjah ports Authority to that can reach the upper parts of theadapt to implement a number of investments loaded deck of a ship at aneconomic In addition to port activities, at both sharjah Container terminal accelerated pace. Dalgaard says:“thisvolatilities. Gulftainer’s third-party logistics (sCt) and Khorfakkan Container initiative has enabled us to innovate company, Momentum Logistics, how we handle container moves for – Flemming which operates freight forwarding, large modern ships at the terminal.” Dalgaard, trucking, warehousing, container Gulftainer repair and contract logistics in the KCt has a distinct geographical UAE, also recorded a positive advantage in being able to serve the performance in 2016, while Gulftainer Indian subcontinent, East Africa and Container repair (GCr), a subsidiary the Gulf countries. the proximity of of Momentum that provides value- Khorfakkan to the Indian added services, recorded an subcontinent, especially, has been a impressive 22% increase in key factor in new feeder services inspection volumes and a 28% being started by four major regional increase in sales.“these milestones operators over the past year. these have set a positive tone for the year, services cater to the needs of mainline carriers who call into Khorfakkan to tranship cargo for final delivery both to the Indian subcontinent and Gulf ports.TMS UAE Yearbook 2017/18 23

SHIPPING AND SHIPMANAGEMENTTristar becomes executive, Eships, says: “We area major player exploring new business opportunities and going forwardA large-scale vessel acquisition programme has meant that Tristar will continue to focus onEships, the shipping arm of the Tristar group, now has a shipowning as a core activity. Theremuch higher regional profile are no more newbuilds on order, but the purchase of secondhand vesselsAbove: Silver E ships was acquired by Tristar Shipyard in Korea. These 50,000 dwt is highly likely in the nextHessa, one of the for US$90 million in March tankers are very environmentally 12 months.”six brand new MR 2016, since when the group friendly, featuring propeller hub captankers, calling at has invested heavily in fins, new design propellers and trim Last year Tristar achieved a 16%Port Khalid in expanding the operation’s fleet. optimisation systems. increase in EBITDA profitability, withSharjah in Today Eships is the proud owner of the newly acquired shipping divisionFebruary 2017 22 ships, including eight MR type Time charters playing its part in the improved product tankers, seven coastal performance. Peters adds: “The tankers, five chemical carriers and The majority of Eships’ vessels are on market is tight at present, but we two LPG tankers, making it one of long-term time charters with oil expect a gradual uptick over the next the UAE’s leading shipowners. Of the majors, although some of the newly 12 months and we are therefore Eships fleet, 15 vessels have been acquired vessels are on bareboat cautiously optimistic about future acquired in the past 12 months. charters. The company has recently prospects.” announced the charter of two MR Among the new arrivals are a tankers to ENOC Singapore for a five- Originally based in Abu Dhabi, the series of six MR type tankers ordered year period, continuing this strategy. Eships team has relocated to Dubai. by Tristar from Hyundai Mipo As a result, the Tristar group has Chris Peters, acting chief consolidated its two shipping teams within an office at Jumeirah Lakes Towers. One of the focal points for the company is safety at sea, and Eships held a Safety Day last December on the theme of ‘Act before we need to react’. The event included interactive and reflective learning sessions24 TMS UAE Yearbook 2017/18

SHIPPING AND SHIPMANAGEMENT Successful strategy helps ISL weather the shipping storms A joint venture between Tata Steel, NYK and Martrade, International Shipping and Logistics (ISL) has achieved considerable success through being ‘asset light’where the crew of three coastal Headquartered in Dubai since its formation in Captain SR Patnaik, director and chief executive,vessels were joined by 2004, ISL has focused primarily on dry cargo International Shipping and Logisticsrepresentatives of oil majors shipping, adopting what chief executivechartering the vessels, the ships’ Captain SR Patnaik describes as an‘asset-light’ the near future. Captain Patnaik adds:“Themanagers and Eships’ own model of operations. business is shifting eastwards and we have tomanagement team. move to reflect that. But Dubai is still the best ISL does not own any vessels but instead place for us to have our headquarters, givenObjectives charters tonnage, generally bulk carriers of our focus on India and the UAE. Strategically it 20,000-120,000 dwt, on a short or long-term is an excellent location for us to be based.”Peters says: “There were a number of basis for clients including end-users, mineobjectives. The first was to get the owners, manufacturers and traders. Operating In addition to the bulk market, ISL has inship’s crew to reflect on what they mainly east of Suez, with a primary focus on recent years developed a strong presence inshould do as a team, and the Indian Subcontinent and UAE markets, the the Indian ro-ro coastal trades, mainlyindividually, in day-to-day operations company carries a range of bulk cargoes transporting cars. This is a fast growing sectorto make vessels safer and accident- including coal, iron ore, limestone, cement, and the Indian government is keen to movefree. We also wanted to demonstrate fertiliser and bauxite, among others. new car transportation off the roads ontoa leadership commitment to safe ocean routes.operations and to get all parties to Captain Patnaik says:“This asset-lightreflect on how to assess an incident strategy has had positive results for us as we The possibility of diversifying into theand learn lessons from it. Last, but are now a cash rich and profitable company tanker trades is also being explored.“We willnot least, we wanted to reward good that has not been exposed to the wide probably start in a small way with someperformers.” fluctuations in asset values that others have Handymax tankers,”says Captain Patnaik.“The suffered from. We have not taken the hit that time seems right for us to enter the tanker As well as expanding the Eships many companies have in the slump and the market, following the same asset-light strategyshipping business, Tristar also last asset-light model has certainly worked for us.” that has served us well in the dry bulkyear commissioned a multipurpose segment.”logistics facility at Jebel Ali Free Zone Regular clients(JAFZA).The JAFZA South logisticsfacility is the first silo and bagging ISL carries between 5 and 8 million tonnes ofarea for polymers inside the zone cargo on behalf of a core group of around 50and offers customers more efficient regular clients. Captain Patnaik adds:“We haveshipping services through having a diverse customer base that we have built updirect access to Jebel Ali port. over the past 13 years. Tata Steel to begin with accounted for the majority of our business, but we have diversified. While Tata Steel is still an important client, it is no longer our main cargo provider.”In 2016-17, the company chartered vessels for 87 voyages from various owners, the majority of which were either Handymax or Panamax type carriers. As well as the dry bulk trades between India and the UAE, ISL is active in trades between South East Asia, Australia, South Africa and India, and the Red Sea region, as well as movements within the Middle East Gulf. The majority of its business, around 60%, originates in or is destined for the Middle East. Aside from the Dubai headquarters, ISL has local offices in Mumbai, Kolkata and Chennai, and is planning to open a Singapore office inTMS UAE Yearbook 2017/18 25

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SHIPPING AND SHIPMANAGEMENTDiversification points Gulf Navigationon the road to sustainable recoveryIn what has been a landmark year forDubai’s Gulf Navigation Holding, thegroup has ordered new ships,entered into a number of strategicinternational alliances and has settledsome overhanging financial disputesRight: Khamis T he only shipping company chapter which will showcase a come into force by 2020.”Juma Buamim, that is publicly listed on the stronger and more competitive Buamim believes that having aboard member, Dubai stock market, Gulf marine and shipping company withmanaging director Navigation Holding, is poised full commitment to its shareholders, focused strategy will be a rewardingand group chief to make a sustained recovery after the market and the industry at large.” one, especially as the Gulf region hasexecutive suffering some significant difficulties so much to offer. He points out that following the financial crisis. Last year The process of reinvesting to there are petrochemical projectsEng. Omar Abu it cleared outstanding debts with expand its fleet has also begun, with representing up to US$13 billion ofOmar, president, Nordic American Tankers and in early an order for six MR type chemical/ investment in the Gulf states whichmarine and 2017 the company announced that it product tankers placed last October are expected to come intooperations had reached a full and final with Wuchang Shipbuilding of China. production between 2020-2024, settlement with three of its creditor These will be delivered from mid- adding an estimated capacity of banks – DVB Bank SE, BNP Paribas 2018 onwards, with the last in the 8 million tons each a year. This will and DNB Bank ASA. series being handed over in 2020. create significant opportunities for shipping companies active in the These settlements are part of a Tanker orders product tanker market, he suggests. continuing process being undertaken by the new management of Gulf Further tanker orders are expected to Also on the Gulf Navigation Navigation, led by Khamis Juma be placed as a result of a strategic shopping list are a number of new Buamim, board member, managing alliance with Mena Energy. The two ventures and acquisitions that Deloitte director and group chief executive, companies have agreed that Gulf has been appointed to review and and Eng. Omar Abu Omar, president, Navigation will acquire up to 12 evaluate, as well as offshore support marine and operations, to clear vessels of between 50,000 and vessels. In particular, the company is historical liabilities and allow the 120,000 dwt, which will be looking at acquiring multipurpose, company to refocus on exploring time-chartered to Mena Energy highly flexible OSVs that can carry out emerging opportunities for growth in for the transportation of crude and a variety of functions within the the maritime and shipping industry. petroleum products. Middle East market. Gulf Navigation is in negotiations Buamim says:“The newbuildings Continuing its business to settle the remaining dispute with we are ordering will have long-term diversification strategy, which aims to HNA/Jinha and says it is hopeful of contracts. So they represent low risk put it on a stronger financial footing resolving the matter in the near investments with significant earnings going forward, Dubai-based Gulf future. Buamim adds:“Our primary potential. Importantly also they meet Navigation Holding has signed a objective is to seek fair and amicable or exceed the new IMO regulations preliminary agreement with settlements in respect of legacy covering fuel and emissions that SeaQuest, an international provider disputes and we shall continue until all issues are fully resolved. The company is now starting a newThe company is now starting a newchapter which will showcase a strongerand more competitive marine andshipping company. – Khamis Juma Buamim, Gulf Navigation HoldingTMS UAE Yearbook 2017/18 27

SHIPPING AND SHIPMANAGEMENTof shipmanagement and Khamis Juima been announced through the so- on vessels and offshore platforms. Thenewbuilding project management Buamim (centre) called GNH Northern Project. This joint project team is being led byservices. In partnership with and Eng. Omar Abu includes possible diversification into Omar of Gulf Navigation and YanSeaQuest, Gulf Navigation plans to Omar, president, shipbuilding, shiprepair, offshore rig Jingliang, vice president, Qingdaoexpand its shipmanagement and marine and maintenance, mobile and onboard Beihai Shipbuilding Heavy Industry.marine consultancy business in the operations (right, shiprepair and logistics. OptionsMiddle East and Africa through a new front) signing a being evaluated include the Gulf Navigation currently operatessubsidiary company. pact with Deloitte acquisition of a floating dock facility a fleet of 14 vessels, including both last year, to review and mobile cranes capable of working owned and chartered-in vessels, Last year Gulf Navigation also the possible including chemical tankers andsigned a joint venture agreement acquisition of a offshore vessels. Buamim says:“Wewith Polimar of Turkey to set up an shipping fleet are aiming to become a diversifiedinternational marine agency, marine operator within the maritimeproducts and shipyard business. With industry as having different revenuethis partnership, Gulf Navigation aims streams will ensure sustainability andto offer agency and marine services long-term viability.at a wider range of ports worldwide,in addition to the UAE where it is “We plan to expand our globalalready active. profile and seize growth opportunities, with a regional twist, to Plans to explore major investment become a partner in the diversificationin the northern part of the UAE have of the Gulf economy.”Dubai office spearheads Marshall can come back to clients quickly withIslands’ Middle East growth drive quality information in response to any queries they may raise.”Having a local presence in Dubai is helping the Marshall Islands’flag increase market share among Middle East owners Prior to registration, the RMI vets the owner, operator and vessel beforeThe Republic of the Marshall Islands (RMI) Captain Amarjit Kauchhur, vice president, acceptance into the registry. Moreover,fleet now stands at over 223 million dwt, Middle East, IRI during the vessel’s time in the registry, RMImaking it the second largest registry in the conducts risk assessments and works withworld in tonnage terms. International expand and raise the quality of their fleets. owners and operators to ensure vesselsRegistries (IRI) provides administrative Captain Kauchhur says:“We have good meet the registry’s quality standards.technical support and its local presence in vetting processes based on the data weDubai is helping increase market share hold globally and that allows us to Qualship 21among Middle East owners. thoroughly evaluate the vessels coming in.” The RMI registry has recently received Captain Amarjit Kauchhur, vice president, Local Middle Eastern clients can also confirmation that it will continue its UnitedMiddle East, IRI, says:“We have expanded our contact the local office at convenient hours States Coast Guard (USCG) Qualship 21presence in this region in recent years and we without waiting for the US to open for status for 2017. The designation means thatnow have around 13 million gross tons (gt) of business.“Owners can phone us here in real ships flying the Marshall Islands flag are lessMiddle East owners’tonnage flying the RMI time, and we provide 24/7 coverage 365 likely to be detained in US ports, whichflag. Most of the good quality companies, like days a year,”says Captain Kauchhur.“The assists owners and operators in keepingOman Shipping, Nakilat, Seacor, Topaz, type and quality of support we provide their ships moving, reducing downtime.Emarat Shipping, UACC and UASC, have ships cannot be matched by other flags. Here in Captain Kauchhur adds:“This is theregistered with us.” Dubai we have a full range of skills and we strongest quality programme in the world. Achieving less than 1% detentions across all Like other IRI offices worldwide, the port calls is phenomenally good.”Dubai office operates in a highlydecentralised way. Captain Kauchhur adds: The registry’s Qualship 21 status, and“We can take decisions locally, and issue White List status on the Paris and Tokyocertificates, without needing to go to head Memorandums of Understanding (MoUs),office. We have the knowledge base, as the mean that RMI-flagged ships are greetedoffice is staffed by people with a lot of amicably by port state control (PSC) officerstechnical and operational experience, all over the world.enabling us to offer clients a comprehensiverange of services here in Dubai.” The RMI fleet is also young. At the end of March 2017, the 4,080 vessels in the fleet The RMI register aims to help clients had an average age of 9.26 years. While the second largest overall in the world, after Panama, the RMI registry is the world leader for tankers, and is also now the flag of choice for Greek shipowners.28 TMS UAE Yearbook 2017/18



shipyarDsDrydocks World builds onthree decades of successMarket conditions are tough for shiprepair yards at the moment, but Drydocks WorldDubai continues to thrive, especially in the tanker segment.Main picture: An O verall shiprepair volumes coming into force of the Ballast Water well as saudi aramco and saipem.aerial view of were down in 2016 at Convention could have a positive Drydocks World Dubai also has aDrydocks World Drydocks World Dubai as effect, for instance, as manyDubai – the shipowners, struggling with companies are now looking at newbuilding operation targetingcompany significant problems in most sectors retrofitting this technology during both the shipping and offshorecontinues to of the industry, have cut back dry dockings. That said, a lot of markets. The company is, for instance,achieve success in maintenance and repair expenditure owners are still taking a‘wait and see’ currently building the Borwin 3 hDVCthe tanker market to the bare minimum in many cases. approach until there is a clearer converter platform at the yard forespecially The downturn in oil and gas markets picture of what the actual petrofac. This is expected to be has also had an impact on the yard’s requirements will be.” completed in 2018 when it is conversion and rig business, with a destined for deployment in the North limited global requirement at present VLCC bookings sea. The yard is also currently for FpsO work, for example. working on the second project for There have also been more VLCC Kvaerner to build components for Last year the Dubai yard repaired bookings in the first part of 2017 than Johan sverdrup drilling platform over 250 vessels, around 6% less than last year, underlining the yard’s jacket for end-user statoil, which is to in 2015. Furthermore, the average capabilities in this important be located in the Norwegian sector of amount of work carried out per vessel segment.“Tankers make up the the North sea. was lower than in recent years. as largest part of our shiprepair Mohammad rizal, chief operating business, with Greek, Middle Eastern an innovative new dual-fuel tug, officer, Drydocks World Dubai, and Far East owners in particular built at the yard in conjunction with observes:“This side of the business entrusting their ships to the yard,” Wärtsilä, has recently entered the was relatively quiet last year as says rizal.“We are also achieving water and was undergoing trials in the owners were keeping a tight control success in the LNG market, for first three months of 2017. it was over their money. shiprepair companies like NGsCO, Excelerate expected that it would enter service in accounts for around 50% of our and Exmar, among others.” May this year, providing berthing and revenue at the moment, so it is still manoeuvring services to vessels extremely important for us.” Despite problems in the offshore entering the Drydocks. The tug, which market, Drydocks World Dubai is still can use LNG for fuel, is a new There have been, however, some seeing a steady stream of rigs docking environmentally friendly design that signs of an upturn in 2017.“Based on for repair and upgrade work. at the will also offer Drydocks World higher volumes over the first three months end of March 2017 there were three levels of power, and greater of the year, we are a bit more rigs in the yard for regular customer manoeuvrability, than its existing tugs. optimistic now,”says rizal.“The National Drilling Company (NDC), as rizal says:“We will evaluate the30 TMS UAE Yearbook 2017/18

shipyarDseconomics and performance of this the yard is acquiring high Offshore-related Drydocks World Dubai recentlydual-fuel tug over the next few productivity, hydroblasting robots repair and commemorated the yard’s 34thmonths and we may build additional that can blast a ship hull area up to conversion work is anniversary with a celebration totugs of this type, both for our own 60 m2 per hour, compared with an important for the mark its achievements and recogniseuse and also to market to third-party average of 4 m2 per hour manually. yard employees for over 30 years ofoperators. We do not aim to become service. Thanking all employees,a commercial tug builder, but we Robotic blasters clients, suppliers and partners forthink we can develop a niche for their contribution and ongoingourselves, building special designs for rizal says:“We have 13 robotic support, rizal concluded:“The yardthe local market.” blasters in the yard and we believe has enjoyed three decades of we are now the biggest user of this significant milestones and Conversion work is at relatively type of technology in the global achievements; we are now lookinglow ebb at Drydocks World Dubai. shiprepair business. They are not just forward towards working on newNonetheless, during 2016 the yard better for the environment; they are projects and developments that willcompleted the FpsO Cyrus much faster, and more economical, as strengthen the UaE’s leading positionconversion, which was a significant we save on the cost of disposing of in the global maritime industry overproject for the company. grit. in addition, using hydroblasting the next decade and beyond. Under creates more flexibility in terms of the the foresight of the UaE’s wise leaders Despite the challenging market types of vessels we can dock and through the dedicated efforts ofconditions, Drydocks World Dubai alongside one another.” our employees, we are sure tocontinues to invest to upgrade accomplish much more in the yearsequipment and facilities. in addition ahead.”to the new LNG-powered tug that ithas built in-house, Drydocks World Drydocks World Dubai believes inhas recently purchased three new building customer relationships andtugs from sanmar in Turkey, while the suggests that repeat customers arecompany also has a programme to the main reason for the yard’s successupgrade the cranes within the yard to over the last 34 years.ensure they meet the needs of itscustomers. rizal adds:“Drydocks World is the yard of choice for many customers in addition, it is investing to and with multiple alliancereplace grit blasting with more agreements with blue-chip clients forenvironmentally friendly the Middle East region.”hydroblasting systems. in this contextTMS UAE Yearbook 2017/18 31

shipyarDsADSB flourishesfollowing floatingdock investmentabu Dhabi ship Building (aDsB) has expanded the scale andscope of its activities with positive resultsS hiprepair and servicing repair and servicing side of aDsB’s Khalid Faraj shipping, aDpC, acta remains an important part of operations. indeed, during 2016 it Marine, Boskalis, Bourbon Offshore aDsB’s business. Last year the serviced 77 vessels for the UaE Navy and Oldendorff. company handled 285 alone at various locations across thevessels of various types, 40% more country. The increase in repair activity overthan in 2015. These included offshore the past year primarily reflects thesupport vessels, chemical carriers, as well as various regional naval company’s decision to set up a newproduct tankers, tugs, jack-up rigs, clients, aDsB has an extensive list of floating dock facility in Mina Zayedlanding craft and various naval ships. UaE and international commercial that can handle ships up to 10,000 customers. These include EsNaaD, Naval work is a key element of the irshaD, NMDC, Zakher Marine,Efficiency drive helps Albwardy niche projects for delivery in late 2017 andDamen beat the downturn early 2018. These include building two rotor Tugs, to a non-Damen design, and a 100The recently rebranded joint venture shipyard has tonnes bollard pull Damen rotor Tug forconsolidated its position as one of the leading builders Kotug, which will be deployed for a contractof specialist vessels in the UaE, as well as being a in australia. This will be the largest rotor Tugsignificant provider of repair and refurbishment services built to date anywhere in the world.The past 12 months have underlined the The Sharjah yard has Offshore supportfact that albwardy Damen, which has delivered a numberfacilities in sharjah, Fujairah and Dubai, is of new Damen- The yard is also working on a contract toone of the most important shipbuilding designed tugs over build a shallow draught, self-propelled jack-yards in the region for smaller, specialist the past year up pontoon 3526 for the UaE-basedcraft. During 2016 the company delivered contractor aqua Diving services. Oncea total of 14 vessels, a slight increase from top speed of over 35 knots during sea trials delivered, it will be used primarily to deliver2015 levels, mostly asD 2411 and 2810 and represents a potentially popular offshore support services, including thetugs, workboats and dredgers, as well as addition to its existing portfolio. provision of accommodation facilities fortwo aluminium-hull, fast crew, type FCs personnel as well as operating as a work3307 supply boats. These vessels were all While the marine industry in general is in platform with crane facilities. The jack-up,standard well proven, high quality and a downturn, newbuild production at which will be named the aqua rise iii, willoperationally efficient Damen design albwardy Damen is still running at normal have accommodation for up to 128vessels. capacity as the company has been personnel with a 350 m² of deck space and successful in securing some interesting two cranes, rated at 75 and 15 tonnes. in the first quarter of 2017, albwardy Designed specifically for Middle EastDamen also delivered an aluminium operations, the vessel will also be fitted withlanding craft for a regional client. Designed a helideck and life boats.and engineered completely in-house withinthe UaE, the new landing craft achieved a The company has further maintained a healthy shiprepair business over the past year. Willem Moelker, albwardy Damen sales and marketing director, says:“While 2016 was a tough year for shiprepair globally, we drydocked around 150 vessels,32 TMS UAE Yearbook 2017/18

shipyarDstons lightweight, and up to 180 m in Last year the company handled 285 vessels of various ADSB last yearlength. The dock was purchased from types, 40% more than in 2015. commissioned aa yard in Turkey, and arrived in July new floating dock2016. The offshore support vessel at Mina RashidBourbon Liberty 108 was the firstvessel to use the facility, which pipe and electrical repairs, alongside only lift vessels of up to 2,500 tonsincludes a modern workshop able to maintenance work. and up to 80 m long. The companycarry out structural steel, mechanical, has also acquired additional quay prior to this upgrade, aDsB’s space at Mina Zayed to complement syncrolift facility in Mussafah could the near future.“Our continued drive for efficiency is supporting our customers in adjusting to this new reality, but we are also feeling the effects in our revenues,”says Mr Moelker.“We are cautious and expect recovery will take place after 2017, but in the meantime delivering a quality, safe service, at the right price, is why customers are returning to albwardy Damen.”a volume that was similar to 2015. however, A computer-generated New nameturnover per vessel was around 30% down image of Albwardyas owners are rightly being very careful with albwardy Damen is a new brand name,their maintenance budgets and only carry Damen’s new workshop announced earlier this year, for the group ofout the minimum as required by Class and at Dubai Maritime City yards previously operated as albwardyother stakeholders.” Marine Engineering and Damen shipyards made this project very successful, both in sharjah. The renamed venture will this year although the oil and gas sector is going terms of quality and safety, and we were further strengthen its position as a providerthrough its worst downturn in decades, very proud to receive a formal compliment of shiprepair services in the region byalbwardy Damen has managed to secure from the contractor, hLG, on completion.” constructing a new office and workshoptwo notable jobs in this sector. The yard The second project involved the upgrade facility in Dubai Maritime City (DMC). Thisrecently carried out a comprehensive and repair of two lift boats for singapore- expansion will enable albwardy Damen torefurbishment of a spM loading buoy under based Texas. During a three-month offer a full range of shiprepair activities toa contract with the habtoor Leighton Group maintenance period, albwardy Damen customers in DMC and will be integrated(hLG) in Dubai. Mr Moelker says:“Our carried out leg and bracing repairs, as well with the company’s existing business unitsshiplift and modern facilities in sharjah as preparing both units for work in saudi in al Jadaf, sharjah and Fujairah. arabia. “This new state-of-the-art workshop and The shiprepair market remains outside space will serve customers docking challenging, with owners’maintenance in DMC in the common dry berth area. With strategies guided by the need for cost control, this new facility, we will be able to offer our and this pattern seems unlikely to change in customers the same high quality service as we can at our sharjah yard,”adds Mr Moelker.TMS UAE Yearbook 2017/18 33



shipyarDsADSB’s Mussafah yard has a strong track recordbuilding new naval craft for regional clientsfacilities at its existing Mussafah yard, treatment machines. We are currently very successful in thethereby further enhancing its in addition to equipment and UAE market for drydocking andcapabilities quite significantly. repairing commercial ships facilities, aDsB is also investing according to Dr Khaled al heavily in human resources, training – Dr Khaled Al Mazrouei, ADSBMazrouei, chief executive:“We are its workforce to develop their skillscurrently very successful in the UaE and ensure their ability to handlemarket for drydocking and repairing sophisticated projects. aDsBcommercial ships. The investment in management is also focused onthe newly launched floating dock supporting the UaE government’sgives us the opportunity to target Emiratisation programme by trainingnew and untapped markets.” Emirati nationals.Additional customers as well as servicing and repair, aDsB is also a leading regionalThe company has focused on shipbuilder with a particular strengthattracting additional customers in the naval sector.through a network of agents in 17countries across Europe and asia who Corvetteswill market aDsB’s services andfacilities. This initiative has proved The company has recently completedhighly successful, with some 26 vessels building a series of six 72 mof various types, including tankers, Baynunah class corvettes for the UaEbarges, tugs and jack-up rigs using the Navy, and last year delivered the firstfloating dock up to early april 2017 for arialah class Offshore patrol vessel toroutine drydocking and maintenance the Critical infrastructure and Coastalprojects. protection authority (CiCpa). in addition, aDsB has recently delivered aDsB is planning to invest six vessels out of an eight-ship orderfurther, particularly in environment from the Kuwaiti Ministry of Defence.friendly equipment. recently the The remaining two 64 m landing craftcompany acquired a robotic high- are currently being built in aDsB’spowered washer and hydro-blasting Mussafah facility and are scheduledmachine, the first time a shipyard in for launch in the second and thirdabu Dhabi has invested in such hull quarters of 2017.TMS UAE Yearbook 2017/18 35

clAssificATionClassificationsocieties uptheir gameThe UAE remains an important centre for several of theworld’s leading classification societiesD ubai is the regional are seeing a particular success story costs and these can be avoided. The headquarters for most of the with tankers and offshore vessels in drones can also undertake checks in world’s leading classification service, and a number of Middle East- hard-to-reach places more easily than societies, many of which have based owners have decided to manually, and it is much safer, as wellstrengthened the range of services transfer class over to us in the past as being cheaper.”DnV Gl, which hasthey offer from their UAE bases over year or so.” developed its own drone in house,the past year or so. specially designed for surveying ships DnV Gl is rolling out a number of and offshore rigs, has only just DnV Gl has increased its regional new services which are available to started offering drone surveys, butmarket share with respect to both the owners in the region. This includes a already there is a high level of interestnewbuilding and ships-in-service range of tools, including a new app, in making use of the new technology.sectors in each of the past two years. supported by an advisory team, toWhile new vessel construction activity assist clients with EU Monitoring, other developments of noteis generally at a low ebb at present, Reporting and Verification (MRV) include moves towards digitalisation,DnV Gl has been contracted to compliance. Mr Becker says:“MRV such as the cloud-based‘digital twin’provide classification services to both comes into effect in 2018 and is high project. The digital twin is a virtualGulf navigation and Topaz for their on the agenda for owners calling into image of a vessel, maintainedongoing newbuilding programmes European ports. our advisory team throughout its lifecycle and easilyover the past 12 months. based in Dubai can help ensure accessible at any time.“We have owners are well prepared for these digital twin experts in the UAE who Ralph Becker, business new rules governing co2 emissions.” can provide analysis, insight and development manager, diagnostics, based on this data, DnV Gl, says:“We Drone surveys without any need to physically visit have a good the vessel,”says Mr Becker.“The My team spirit here in another significant initiative, DnV DnV Gl portal is also becoming in Dubai, Gl has also chosen Dubai as a hub for increasingly popular, while a strong offering a high the development of drone surveys quality service, across the Middle East, india and and owners can Africa. The society has trained a team see the benefits of surveyors to operate drones and from working with work with them to avoid the need for us. We close-up surveys.“This has big advantages for shipowners and operators,”says Mr Becker.“for surveys inside tanks, scaffolding makes up a high percentage of the A number of Middle East-based owners have decided to transfer class over to us in the past year or so. – Ralph Becker, DNV GL36 TMS UAE Yearbook 2017/18

clAssificATion automated systems safety, data integrity and software verification.“The ABs cybersafety program is an example of how we listen to our clients’ concerns around safety challenges and develop guidance to meet those challenges,”says Mr Brincat. ABs maintains a regional workforce of more than 100 surveyors and engineers, which is probably the largest of any classification society. This extensive network operates across 21 offices within the Middle East and indian subcontinent region.team of experts in cyber security has society to be accredited to perform DNV GL has Engineering officealso been assembled in the region.” EU MRV assessments. it is currently developed special working with owners and operators drones to carry out ABs operates a full service engineering in the offshore sector, American to help them verify that their survey work office in Dubai to support the ongoingBureau of shipping (ABs) is the class monitoring plans are in compliance growth of the marine sector in theleader for existing and newbuild with the requirements. Many region, strengthen service deliveryexploration and production units. owners and and enhance communication byRecently ABs was chosen to class a Electric propulsion operators in operating in the same time zone. Theseries of nine self-elevating drilling the marine local engineering department offers aunits for Abu Dhabi’s national Drilling Joe Brincat, vice president, Middle and full range of engineering analysis andcompany, eight of which have been East region, says:“With the increased offshore plans review services, includingdelivered at lamprell. Beyond its industry focus on environmental industries stability, tonnage, portablesupport for new drilling fleets, ABs is compliance and operational are shifting accommodation integration/helping the region develop new performance, many owners and their conversions, well test stimulation,offshore support projects, including operators in the marine and offshore attention to dynamic positioning upgrades, theself-elevating units (sEU) and offshore industries are shifting their attention electric carriage of dangerous goods/support vessels, and has also worked to electric propulsion and non- propulsion. chemicals and firefighting systems,with owners helping them adapt their conventional sources of power. We among others.sEUs to support drilling operations. recently published the ABs Advisory – Joe Brincat, on Hybrid Electric Power systems to ABS Mr Brincat adds:“in spite of the As well as the offshore market, provide critical information that current market headwinds, ABs hasABs also has a strong market marine and offshore owners and been steadfast in its commitment topresence in the commercial shipping operators need to make smarter safety and the markets that we serve.sector in the Middle East and the decisions about energy generation We continue to work with owners toindian subcontinent. The society and storage.” find new ways to adapt technologiespoints out that it has classed more and innovations to their fleets andthan 25 tankers and bulkers that have ABs is similarly taking a leading role develop solutions that supportbeen delivered in the past 18 months in addressing the issue of cyber operational efficiencies andto various regional owners. security and has taken steps to provide regulatory compliance.” the industry’s first risk-based Environmental services are a management tool for mitigating risks Another classification society thatparticular strength of ABs, which connected to cyber security, is raising its profile within the Middleclaims to be the first classification East is classnK, which has technical staff in offices in Dubai, fujairah and Abu Dhabi. Abdel El shennawy, general manager, business development, Middle East, classnK, says:“over the past five years we have seen good growth in our activity in the region, increasing our market share, especially with regard to bulk carriers and tankers.” classnK believes that it is ahead of its rivals when it comes to exploiting ‘Big Data’, and points to the success of the classnK Archive center (nKAc),TMS UAE Yearbook 2017/18 37



clAssificATionlaunched last year in cooperation expanded significantly. in addition to quickly to requests and offer a high Joe Brincat, vicewith iBM. This is the maritime the two other UAE offices in Abu quality technical service at a president, Middleindustry’s first onshore digital archive Dhabi and fujairah, the company now reasonable price,”says Mr shennawy. East region, ABScentre that fully complies with the has a presence in Qatar, Bahrain, “We aim to expand further and getiMo goal-based ship construction Pakistan, iran and lebanon, all more ships under our class fromstandards (GBs). The nKAc solution reporting to the Dubai regional centre. owners in the region. classnK isoffers safe and secure storage of ship doing well in the Middle East and weconstruction file (scf) documents in “We have grown in the region want to sustain that growth.”a digital format, while also keeping a because we have shown we respondfull digital copy of‘scf onboard’forback-up purposes. it can also be usedas an information storage andmanagement platform for other shipdrawings. While classnK does have somenewbuilding projects for Middle Eastowners under discussion, the ships-in-service sector is its primaryregional focus at the moment.Activity is centred, in particular, at thefujairah anchorage, where there aremore vessels under its class than forany other classification society, aswell as Dubai Drydocks. since the establishment of theclassnK office in Dubai seven yearsago, the regional network hasTMS UAE Yearbook 2017/18 39



TERMinAlsCapacity boost for Ajman container racks. Hutchison Ports Ajman has also recently appointed aHutchison Ports Ajman has invested to significantly increase dedicated customer service team tothe port’s capacity offer customers personalised business solutions.S ince it took over the port traffic and anticipated future management of Ajman Port growth, Hutchison Ports Ajman has Food Trading Unit in 2012, Hutchison Ports over the past 18 months taken steps Ajman has been developing to increase the port’s capacity by Ajman Port handles import/exportthe infrastructure, equipment and around 40%. This has been container, ro-ro and general cargoservices of the port in order to raise accomplished through the traffic transported on daily feederstandards and meet the quality introduction of new rubber-tyred vessel calls. in addition, the port hostsrequirements of its parent group, gantry cranes, mobile harbour the food Trading Unit of Ajman’sHutchison Ports. cranes, reachstackers, empty Public Health section, which is container handlers and reefer intended to ensure fast, smooth in response to increased levels of clearance procedures for food cargo, giving the port a competitive advantage in this sector. A spokesman for Hutchison Ports Ajman says: “We have a commitment to continue to develop services and operations at Ajman Port. By doing so we aim to contribute to the overall economic sustainability and development of the Emirate of Ajman, as well as meet the requirements of our customers and partners.”TMS UAE Yearbook 2017/18 41

lAw Also over the past year Fichte & Co has established its Abu Dhabi office, headed by partner Ziad Touma. The launch of the office was announced at the firm’s 10th anniversary party in 2016, and gives the company a presence in a strong growth market within the UAE. Another positive development is the establishment of an Iran Desk in the Dubai office, which supports the company’s affiliated office in Iran. This has been well received by clients and Fichte & Co sees continued interest within the maritime sector in entering the Iranian market. Jasamin Fichte adds:“we are successfully assisting our clients to establish a presence in Iran and secure deals, despite the banking sector still being hesitant about opening up business to the Iranian market. Due diligence is key and companies need to be well aware of the current legal and political situation before deciding to re-enter the Iranian market.”Fichte navigates Ship financea growth course In other sectors, Fichte’s ship financeDespite difficult market conditions, over the past year Fichte & team has been handling a goodCo has strengthened its corporate team with the addition of volume of sale and purchase work,two partners, one of whom is heading a recently opened while debt collection has become anoffice in Abu Dhabi increasing workload as the cashflow situation in the market is still critical. T he strength of Fichte & Co has considerably, with another partner Due to the ongoing stagnation in the always been its very recently joining over the past year. market, work has been moving more experienced shipping team. towards the contentious side, with However, in the last couple of Jasamin Fichte, managing partner, non-contentious work taking a back years the company has evolved from says:“This change allows us to handle seat.“we see this as an opportunity being a pure maritime law specialist all litigation matters in UAE courts as our litigation team has consistently to a fully fledged corporate law firm, within our office so no additional obtained strong results for our with a strong litigation team costs are incurred to hire a local clients,”states Jasamin Fichte. consisting of Arabic lawyers. The lawyer. More importantly, this avoids litigation team has grown a situation where two firms can argue By way of example, Fichte & Co over the strategy of a case.” has been involved in various bunker disputes both for bunker suppliersWe are successfully assisting our clients to establish a presence in Iran and shipowners, and is assisting clients on a regular basis with regardand secure deals. – Jasamin Fichte, Fichte & Co to the arrest of vessels. As a representative on the creditors’ committee, the company is furthermore directly involved in the liquidation proceedings of Ow Bunker Middle East, which have now led to a final settlement agreement. As far as the development of maritime law generally in the UAE is concerned, Fichte & Co welcomes the establishment of the Emirates42 TMS UAE Yearbook 2017/18

lAwMaritime Arbitration Centre (EMAC) Ince & Co builds on aand is confident that it will promote decade of achievementDubai as a maritime hub. Ince & Co’s Dubai office celebrated its tenth anniversary in Jasamin Fichte adds:“Although 2016 and is now looking to take on fresh challengesmany of our clients have alreadymoved to make use of UAE T he Dubai office of the global matters and revenue. The companyarbitration bodies, they do so at the law firm Ince & Co continues works on both contentious and non-expense of having to do without the to enhance the range of contentious matters, and also has aspecialised rules that are provided by services it can offer the local strong, and interlinked, offshore,the existing maritime arbitration maritime community. insurance and trade practice.centres such as the lMAA or theSMCA. EMAC seems to be well As Rania Tadros, managing Increased rankingspositioned to fill this gap.” partner, points out:“we have grown significantly over the past 12 months Rania Tadros continues: “we wereMaritime law including four additions to our fee- ranked Tier 1 in the legal 500 EMEA earning team. Our maritime-focused 2017 for shipping in the UAE.Fichte & Co notes that it is currently team will be expanded further over Moreover, three of our partnersproviding input and is closely the coming months.” received new or increased rankingsmonitoring the development of the in the Chambers & Partners Globalnew UAE maritime law, the first draft Shipping continues to be the 2017 guide.”of which is expected to be circulated largest part of Ince & Co’s Dubaithis year. According to Jasamin Fichte: practice, both in terms of the number Ince & Co has worked on a“we are hoping for a modern, state- of people occupied with shipping number of recent instructions andof-the-art law based on internationalstandards that is capable of installingconfidence in local industrystakeholders as well as foreigninvestors.” committed to the quality of the

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  TMS UAE Yearbook 2017/18 43

lAwcases for shipping and port clients. It Rania Tadros, respect to the review of commercialhas advised a Dubai company on a managing partner, contracts and business integration. Inproposed joint venture with a Sharjah Ince & Co, Dubai the offshore sector, it acted forFree Zone to provide port Polarcus DMCC seeking to recovermanagement and infrastructure for matters for a UAE-based port debts owed by Erin Energy25 years; provided legal advice from a management company, including Corporation before the EnglishUAE law perspective to a European advising on, and finalising an Commercial Court, when Ince & Coport management company about a agreement for a joint venture with a was succesful in obtaining aconsultancy agreement entered into Russian company worth summary judgment in its client’swith a UAE ports authority; acted for US$500 million. favour.the owners of the tanker Jag laadkifollowing a collision in Fujairah; Ince & Co has recently been Framework agreementadvised on a joint venture in relation retained by a regional shipowner toto a container terminal development provide day-to-day support with The company further assisted Gulfin Iraq; represented Hutchison Ajman Martine Services (GMS) in thePort Terminals in three cases against drafting of a three-year frameworkthe same shipowners for costs agreement with Dwellop regardingincurred by three vessels abandoned the latter’s provision of cantileverat Ajman port; and acted for a systems for GMS’self-elevatingshipowner in defence of a claim support vessels.brought by Abu Dhabi PortsCompany for damage to one of its Rania Tadros concludes:“we haveberths. had a very busy period during 2016 extending into the current year. we It has also acted on numerous aim to continue the growth we have achieved and plan to strengthen theWe aim to continue the growth we have achieved and plan to team through additional partner and associate hires over the comingstrengthen the team through additional hires –Rania Tadros, Ince & Co months.”44 TMS UAE Yearbook 2017/18

lAwMajid Obaid Bin last April, EMAC confirmed a 15-Bashir, vice strong panel of board trusteeschairman and including some of the leading lightssecretary of the UAE shipping, ports and legalgeneral of EMAC sectors, who will act as champions for the centre and spread the message asEMAC adds arbitration to to the value of going down theDubai's growing capabilities arbitration route. Chairman of the board is the distinguished arbitratorThe Emirates Maritime Arbitration Centre (EMAC), which Sir Anthony Colman, a former Englishoffers a much needed forum to resolve maritime-related High Court Judge of the Commercialdisputes, is now up and running Court and former Deputy Chief Justice of the DIFC Court in Dubai. O pened last year as a key maritime disputes through The board, which sets overall strategy element of the UAE and arbitration or mediation. It will also and market approach, is supported Dubai governments’strategy aim to raise awareness of arbitration, by an executive committee to handle to establish a maritime hub and alternative dispute resolution day-to-day matters. comprising a cluster of related methods, through conferences, business activities and services in the workshops, training courses and “EMAC rules are in line with UAE, EMAC has already been well publications. modern arbitration trends and best received by the shipping industry practice with regard to maritime and local law firms. Need for arbitration reconciliation,”says Majid.“The rules are flexible and designed to allow Majid Obaid Bin Bashir, vice Majid says:“There is a real need for a arbitrators practising under them to chairman and secretary general of forum to resolve maritime disputes in make decisions on large or small EMAC, says:“The Dubai Maritime City a cost-effective way, not just within value claims and to make fast-track Authority (DMCA) took the initiative the UAE, but across the region. EMAC judgements if required.” and presented the centre as a concept arbitration rules allow for emergency that would complement the legal and and fast-track arbitration, and parties EMAC aims to add significant value other services already available in have freedom of choice to select the to the local maritime community. Dubai. The response has been very governing law and jurisdiction that Majid points out:“The mediation and positive and it is clear that EMAC fills a best suits them.” arbitration approach is vital and it is vacuum that existed previously.” something that has been lacking in the while the Dubai International region up to now. we are in the process An independent, not-for-profit Financial Centre (DIFC), within which of gathering together a panel of legal entity, EMAC was created by EMAC sits, is the default jurisdiction, talented arbitrators from across the decree in April 2016, and it has been parties can opt for other civil or globe who are interested in working operational since November last year. commercial law frameworks, making within EMAC, bringing them under Its remit is to provide services for EMAC unique among international one umbrella to serve different resolving international and domestic arbitration centres. stakeholders in the region. The message we are trying to get across isThere is a real need for a forum to resolve maritime disputes in a that you no longer have to go outsidecost-effective way, not just within the UAE, but across the region. the UAE to get maritime arbitration, and that through EMAC you can access – Majid Obaid Bin Bashir, EMAC a smooth, easy, cost-effective and high quality dispute resolution process within a convenient time zone.” Already EMAC has been inserted into several commercial maritime contracts and it seems only a matter of time before the centre starts handling its first cases on behalf of the industry, including the oil and gas and offshore sectors, as well as shipping and ports-related activity. EMAC is also planning a series of accredited seminars and educational training events in Dubai as a service to the local maritime industry. Details of these will be available through the centre’s dedicated website.TMS UAE Yearbook 2017/18 45



MARITIME INDUSTRIESCosco group raises its strengthen us in this part of the world.UAE market profile The UAE is the operational centre for a region that covers over 20 ports in 16 countries across the Middle East, Red Sea and Africa, and so our Dubai office has a key role to play.”There have been significant changes since the beginning of Operating agreement2016 for the Chinese shipping and ports group, which is set toraise its profile across the Middle East Within the UAE, Abu Dhabi is also likely to become a more importantRight: Captain C hina Cosco Shipping is the hub following the signing of anWang Song, new name for the global agreement between Abu Dhabi PortsCosraco managing shipping business created by and Cosco Shipping Ports to operatedirector the merger of Cosco and a new container terminal at Khalifa China Shipping last year. In the UAE Port. This is expected to be fully the company is represented by operational in 2020 and will create a Cosraco, a joint venture with the Rais new regional hub for China Cosco Hassan Saaidi group, which provides Shipping. a range of services including container, bulk, breakbulk and Speaking at the ceremony to sign project shipping, as well as freight the 35-year port concession, Wan forwarding and logistics. Min, president of China Cosco Shipping, said:“Abu Dhabi’s Khalifa Captain Wang Song, Cosraco Port will be a strategic hub along the managing director, says:“The Middle ‘One Belt, One Road’initiative. Cosco East is a very important market for us Shipping Ports will dedicate its efforts and we believe the merger will to develop Khalifa Port Container Terminal 2 as a hub for the Upper Gulf region for international container shipping lines.”McQuilling grows business Broker of the Year’2016 by The Maritime Standard.Leading shipbroker McQuilling Captain Harihar Prasad, regional provide tanker and dry bulkhas further strengthened its managing director brokerage and commercial and Capt Harihar adds:“Ouroperations in Dubai over the technical advisory services from exemplary tanker services, inpast year, moving to new to customers across the Middle the JLT office, both regionally particular, have beenoffices in Jumeirah Lake Towers East and Indian Subcontinent. and globally. increasingly recognised by the(JLT). This has enabled the Sectors that are covered include market over the course of thecompany to take on additional crude oil, clean petroleum Global reach last 18 months. Tankers are anexpert staff, boosting the local products, gas, chemicals, dry important area of focus for usMcQuilling head count. bulk, offshore, financial projects In addition to its regional and we will continue to keep it and sale and purchase. presence in Dubai, Mumbai and that way.” Captain Harihar Prasad, Delhi, the privately ownedregional managing director, Strategically located marine services group is McQuilling believes that itssays:“We have continued to between the Eastern and headquartered in New York presence in the Dubai maritimeexpand during 2016, despite Western time zones, with offices in Singapore, cluster adds value generally,the fact that these are trying McQuilling’s Dubai-based team Athens, Caracas, Houston, Lima, and helps deliver the strategictimes for shipping generally. We of experienced professionals Mexico City and Rio de Janeiro vision of the UAE government.have added more people to supported by staff who have Capt Harihar suggests:“Dubaimeet our clients’needs and we expert knowledge of global and is growing as a maritime hubhave enhanced our ability to regional markets. For the past and having ship brokeragedeliver services from our Dubai three years, McQuilling Partners capacity locally is important inregional base.” has been named among the that context. Over the past five top 10 shipbrokers in the world years we have improved our McQuilling Shipping Services by Lloyd’s List, and McQuilling visibility and grown ourDMCC (Dubai) was established Shipping Services DMCC, Dubai business here, so setting upin May 2012 and offers tanker was awarded‘The Marine McQuilling Dubai was not just aand dry bulk brokerage services successful move for the company, but also for the maritime cluster in the UAE.”TMS UAE Yearbook 2017/18 47

MARITIME INDUSTRIESInsurers expand specialises in high risk cover,operational scope including piracy and war risks, as well as cargo insurance.The market is generally tight for marine insurers, but venturesbased in the UAE are spreading their wings to reach out to an Over the past year, marine-relatedexpanded customer base insurance business has remained fairly static. Bhatia suggests:“Our O ne of the longest established We decided to expand maritime business will bounce back marine insurers in the region, into Sharjah as this is an eventually, but shipping markets are Nasco Middle East, reports important market with depressed and this is having a knock- that 2016 was generally a growth potential where on effect. good year for the company, during we did not have a which it maintained its market share. presence up to then. “We expect to see some recovery – Bimal Bhatia, Nasco Middle East during the second half 2017, and our An important development for strong Dubai-based team is ready to the company was the opening up of take advantage of growth a new office in Sharjah last year. opportunities. For the time being we are well placed to hold our own in a Bimal Bhatia, director, says: “We competitive marketplace.” decided to expand into Sharjah as this is an important market with One very positive area for Nasco is growth potential where we did not the yacht market, especially the super have a presence up to then. So far, yacht segment.“The government in although it is still less than 12 the UAE is investing heavily in yacht months since it opened, the marine infrastructure. This may help operation has been very successful drive up this side of the business a and our experience to date augurs little more over the next few years,” well for the future.”The Sharjah says Bhatia. branch offers a full range of Nasco insurance services, including marine- IPIC expansion related cover. Also expanding is the Islamic P&I Club Dubai reinsurance provide in the local market,”Bhatia (IPIC), which has its main operational points out. base in Dubai. After a decade of Another development for Nasco activity within the Middle East region, Middle East during 2016 was the Nasco Middle East offers hull and as well as South East Asia, the club is opening up of a reinsurance arm in machinery insurance for a wide range taking steps to have a better and the Dubai International Financial of vessel types, as well as shiprepair more effective relationship with Centre (DIFC).“This new venture adds liability insurance. It further European shipowners. to the range of services we can To achieve this, IPIC has set up itsFrom right to left: first substantial base in EuropeAmir Mosadeghi, recently, launching a representativechief executive, office in Athens, Greece, with theIslamic P&I Club; collaboration of Ulysses Services.Capt GabrielPetredis, “While the primary goal of themanaging director, Athens office is to promote IslamicUlusses Services; P&I Club services within the EuropeanHadi Emami, shipping sector, it also aims to keepchairman, Islamic the club in direct contact withP&I Club Europe-based reinsurers,”says Amir Mosadeghi, IPIC chief executive. IPIC is a mutual and non-profit organisation with a management office in Dubai and branches in Jakarta, Indonesia and London. It is principally involved in the business of insurance and reinsurance liability cover, including protection and indemnity, freight demurrage and defence, hull and machinery, charterers’liability, loss of hire and war risk through its associate companies.48 TMS UAE Yearbook 2017/18