MIDDLE EAST SHIP REPAIR Meanwhile, a few miles to the west, another new shipyard is due to open formally, probably this month. Built on land reclaimed from the sea in Saudi Arabia’s Dammam, the privately owned Zamil Group facility will be targeting repair and new construction of similar-sized vessels, with a particular offshore focus. The new yard, which will supplement an existing smaller facility nearby, will provide construction, repair and support for Zamil’s own rapidly expanding fleet but the facility will also be targeting third-party repair and newbuild business for regional operators as well as military work for Saudi Arabia’s Navy. The company has invested more than $500 million since 2011— both on f leet expansion and the new shipyard— and intends to spend another $200 million before the end of 2014. It is also undertaking a major capital investment program at the Jeddah Ship Repair Yard on Saudi’s Red Sea coast where two floating docks are currently undergoing repair and upgrade. Zamil’s successful bid for the 10-year lease of the yard in mid2013 addresses a serious shortage of ship repair capacity in the Red Sea. When upgrading of the run-down facility sited within Jeddah Islamic Port is completed, the yard will be well-placed both for passing business – around 6,000 vessels now call in Jeddah each year – and for the support of Saudi Aramco’s expanding offshore activity in the area. In a third move to boost the company’s regional ship repair presence, Zamil has established a joint venture with French naval shipbuilder DCNS to set up a new shipyard in Yanbu. The 500,000 square meter facility will be the largest repair facility in the Red Sea through which an estimated 25,000 merchant vessels sail each year.
It will target the repair and maintenance of naval, offshore and merchant vessels up to panamax size but will also focus on the build-up of Saudi Aramco’s western naval f leet. It is understood that a contract worth close to $1 billion covering Zamil’s share of this work has already been signed. The new yards are an important part of a rapidly changing picture that could see several other new facilities spring up in the months ahead. Last August, Saudi Aramco and Bahri – a rebranded organization formerly known as the National Shipping Company of Saudi Arabia but now incorporating Saudi Aramco’s tanker subsidiary Vela – announced a joint exercise with Singapore’s Sembawang to examine the feasibility of building a new “world class” shipyard on a greenfield site in Saudi Arabia. Meanwhile the region’s heavy-hitters including ASRY, Drydocks World Dubai, N-KOM in Qatar and Oman Drydock Company continue to compete for low-yield ocean-going repair contracts with specific targets including LNG carrier repairs and the upgrade and refurbishment of drilling rigs and accommodation units. Sharjah-based Lamprell, a specialist rig repair and builder, is back on its feet after a series of loss-making contracts—including two wind carriers for Fred Olsen—brought the London-listed company to its knees. Now, however, Lamprell has an order backlog of more than $1 billion, a potential pipeline of work worth several times that and about two years of what executives describe as “breathing space.” Lamprell is also looking to diversify into new business streams including FPSO modules, LNG modules and new, more sophisticated rigs. ■
Oman DryDOck tO expanD LnG carrier services WitH HeLp FrOm partner Dsme
The Oman DryDOck cOmpany (ODC) undertook 75 dry dockings and repairs last year and has performed a total of 190 since the yard opened in Duqm in Central Oman in 2011. ODC also saw staff numbers increase to more than 2,000 in 2013. The vessels ODC has worked on include Very Large Crude Carriers (VLCCs), crude oil tankers, container ships, LNG and LPG carriers, chemical carriers, bulk carriers, as well as dredgers, RO-ROs and barges. Clients include Dynacom Ship Management, NYK, MSC and Exmar Ship Management, Gulf Marine, the Shipping Corporation of India and Pacific International Lines. ODC marketing director Johnny Woo says key jobs undertaken included the dry docking and repairs of two crude oil tankers the Karachi, operated by Pakistan National Shipping and the D & K-1 operated by Synergy Maritime. ODC further undertook work on the MT Gladiator, the first ship from Dynacom Ship Management. As a result ODC now has the ability to work for Dynacom on its other ships including the MT Shanghai, MT Smyrni, MT Eliza and MT Beijing. Woo says the contracts undertaken showcased ODC’s ability to complete complex jobs with speed and efficiency. Woo says the company is delighted with its 2013 growth and it had ambitious expansion plans for 2014, harnessing its ability to handle
22 MARINE LOG February 2014
any size of ship with its two giant dry docks and vast space. “In 2013, we saw ODC continue to establish itself as one of the main ship repair and conversion locations in the Middle East,” he says. “Our focus moving forward will be to win more business from existing and new customers operating carriers, tankers and container ships. We see real potential for growth particularly in becoming a center of excellence for the repair of LNG carriers (LNGC). As a result we will be ramping up the promotion of our services, which are among the most advanced in the world. This includes offering customers the in depth technical support we receive from our partner Daewoo Shipbuilding and Marine Engineering Company Ltd (DSME) and its subsidiary DSEC. This year will see DSEC forge a closer partnership with ODC to provide specialist LNGC repair technology. This will cover areas such as cargo containment systems and the supply chain of various materials such as INVAR, insulation boxes, membranes, prefabricated panels and cryogenic safety valves. We are also investing in new facilities including renovating our cryogenic shop so it can cater to repairing up to four LNGCs at any one time. “Our expansion into LNGC will further be strengthened by our new license to support the French engineering firm Gaztransport & Technigaz (GTT) which specializes in cargo containment systems for high-end liquefied natural gas carriers.” Elsewhere, Woo says ODC saw major growth opportunities in the offshore market. “ODC can provide repair and conversion services to jack up drilling rigs, drill ships and FPSOs,” he says. “We also offer a range of engineering, testing and trial services for offshore projects including the construction of offshore accommodation barges, offshore jackets and platforms as well as top-side modules and subsea pipeline manifolds.”