RAK Port

HARBOUR INVESTMENT

GREAT PORT-EN

Major investments are underway at RAK Ports (owner of four ports and a freezone in the Emirate of Ras Al Khaimah). The largest development currently in progress, the Saqr Port 2.0, will result in an additional 1.1 million square metre port within the next five years. Interim CEO and CFO John Davies discussed this exciting expansion and the company’s next steps, in a report by Imogen Ward.

TS WITH NTIAL

RAK Ports offers customers a stressfree cargo handling environment that is easily accessible from the west coast of Ras Al Khaimah, in the UAE. With an array of services available, the ports are user friendly and flexible for customers’ requirements.

“One of the things we have introduced is a more digitised approach when dealing with customers,” Interim CEO and CFO John Davies said. “We have established a new port operating system and a port community system that enables our customers and stakeholders to engage with us in a digital way, rather than relying on the back-and-forth of paper trails. This has been a positive change and has really benefitted our customers.”

RAK Ports has dominated the port scene since it was first established in 1977. With four ports located on the shoreline of Ras Al Khaimah, the company is experienced in bulk cargo handling, ship repair and can even provide cruise docking for those looking to take advantage of the historic and cultural elements of RAK Old Town.

Since our last interview, the company has successfully completed a major port expansion at Saqr Port. “The work started almost immediately after RAK Ports last interview; it included two 700-metre-deep water berths and was completed in March 2019,” Mr Davies said. “It’s been fully operational ever since; that’s probably the most important development we have completed since our last discussion.”

Salient sea services

RAK Ports offers a multitude of services to those docking at its ports. At Saqr Port, the largest in RAK Port’s portfolio, customers are treated to a deep-water port with an impressive cargo capacity of more than 100 million tonnes per year. It is the region’s largest bulk handling hub and offers access to the 8 million square metre freezone known as RAK Maritime City. Here, clients can lease land on a long-term basis.

“The Maritime City is a great option for our tenants,” said Mr Davies, “it has a niche market, providing direct access for most of its tenants. Also within our portfolio are three smaller ports. Al Jazeera Port, which is a small shipyard operation with cargo handling capabilities.

“The Ras Al Khaimah Port in the city centre, which is predominantly a warehousing operator, but also handles small levels of marine traffic. This port is also home to our state-of-the-art cruise terminal which has been recently engaged due to the cruise market reopening. Finally, Al Jeer Port is a small facility in the north of the Emirate: it is currently dormant. However, we are planning to reopen it very soon.”

The reopening of Al Jeer Port is not the only exciting development occurring at RAK Ports. The company is currently constructing the Saqr Port 2.0. With completion planned in the next five years, this facility will offer 1.1 million square metres of land to its customers. An adjacent quarry will provide waste material for the project, turning its unused material into sustainable building blocks; this green field site will also feature a large reclamation area and bulk cargo handling facilities.

Up and coming investments

The company recently invested in Dynamic Under Keel Clearance software. This has resulted in larger cargo clearance rates. “The recent addition of this software has enabled us to safely load vessels with additional cargo – which results in the ships requiring a larger depth,” Mr Davies explained. “So far, this has been very successful, especially with the implementation of higher shipping rates. A lot of our customers have really taken advantage of this offering. This software has really given us a competitive edge because it allowed us to load around 300,000 tonnes of additional cargo in 2022. This is also a positive result in terms of sustainability, because it requires our customers to perform fewer trips for their cargo.”

This addition has benefitted RAK Ports in more ways than one. As a result of the extra cargo handling, the company successfully broke its monthly cargo record in 2022 – processing 6.2 million tonnes in March.

In an effort to reduce crane repair costs, and positively impact its staff, RAK Ports established the Training Institute. So far, 95 employees – from crane operators to marine crews – have successfully completed the course. “It helped to improve vessel turnaround time, loading capability and reduce equipment damage,” Mr Davies said. “We have had positive feedback from all operators who have gone through it, because previously, training was completed by other workers. We brought in a third party and provided complete educational guid -

ance for all those attending the Training Institute. It has also successfully aided our reputation as careful handlers.”

Positive employee communication is extremely important to RAK Ports, as are

the relationships formed with suppliers. “Our suppliers are key to the company,” Mr Davies said, “particularly the major crane suppliers. We partake in regular meetings with these individuals to ensure our supply chain is running smoothly. Also, these discussions are vital for ensuring the maintenance of our cranes. We have an excellent reputation as one of the largest utilisers of mobile cranes in the world.”

Efforts for going green

The cranes are essential to the ongoing operations at the ports. To upgrade these products and improve the company’s

sustainability, RAK Ports is now in the first stages of its equipment improvement plan – purchasing new cranes which are capable of electrification. The company is also assessing ways to bring electrification to its ports in 2023, with assessments on cabling and plans to move away from diesel fuels.

RAK Ports also recently signed up to the RAK Municipality’s energy programme. Another element to aid its drive towards improving sustainability, Mr Davies explained what this meant for RAK Ports: “It’s important for us to align our values with the Government’s green initiatives. So we have been working very closely with the Municipality team to implement further energy efficiency measures. These will be applied to all our ports, starting with more efficient port lighting in all our buildings.

“Where possible, we are also looking to convert our current crane fleet to an electric supply. We have a great team of people working here at RAK Ports to support this transition; they are key individuals who have upheld a long-standing relationship with us.

“Our business continues to be ever-changing and flexible,” Mr Davies concluded, “and going forward, our long-term work on the Saqr Port 2.0 is an extremely important investment for us. It’s a huge scale project that has a lot of potential in terms of both commercial and development opportunities. All this would not be possible without our fundamental and excellent team who strive for success and continue to motivate me every day.” n