54 1 July 2024 Success Stories
EIC Survive & Thrive 2024
EIC Survive & Thrive 2024
Success Stories July 20241
Story type
AAL Shipping (AAL) Unlocking tomorrow’s energy sector opportunities with six revolutionary new vessels John Pittalis
AAL Shipping (AAL) is on the cusp of welcoming six new and revolutionary multipurpose 32,000 deadweight and 700 tonne max lift heavy lift Super B-class vessels into its fleet, designed to meet today and tomorrow’s energy industry needs. With 5,000 square metres of clear-deck space already, its unique, extendable “AAL eco-deck” technology to optimise wind turbine component transport capacity, and a total cargo intake of 42,630 cubic metres, AAL Shipping is looking ahead to successfully cutting sailings and emissions, reducing client costs and opening up new market opportunities. The challenge - AAL Shipping is renowned as a multi-award-winning premium project heavy lift, multipurpose carrier that has delivered competitive solutions for some of the world’s most dynamic sectors, including oil & gas, mining, energy, construction and agriculture since 1995. With 12 office locations spanning four continents, the organisation offers an ‘around the world’ service connecting Europe, Middle East, India, Asia and Oceania, and is established as one of the multipurpose shipping sector’s top five carriers by total fleet deadweight tonnage (DWT). Emerging from what has been a tough decade for the carriers’ market, AAL Shipping made the decision to reinvest profits from a strong 2021-22 financial performance into the future of the company and the sector. Strategically, many of these funds were earmarked to help establish the organisation as the go-to carrier for wind energy. In order to achieve this, the firm set about working to enhance its fleet, with the aim of adding next-generation heavy lift vessels that could accommodate today’s and tomorrow’s demands from the project sector – especially the wind energy sector - an exercise that would be both complex and costly. The solution - Ultimately, AAL saw a gap in the market and went for it. The result was the revolutionary ‘Super B-Class’ heavy lift fleet. With a single shareholder providing roughly US$300 million in funds, the company set about building six new revolutionary vessels,
Benefits ▸ Safer, cost effective and more efficient projects with fewer sailings and carbon emissions. ▸ Expected revenue growth.
Key findings
Head of Global Marketing & Communications How is AAL Shipping thriving?
#service & solutions (main category) #collaboration, #innovation
consulting its energy clients and working closely with sister company Columbia Ship Management and CSSC, HuangPu WenChong Shipbuilding CO. LTD in China to ensure its relevancy to the energy sector. During this process, AAL’s in-house engineers worked to ensure the incorporation of two critical changes on these vessels versus traditional ships. First, the accommodation black has been placed at the fore of vessel, improving visibility when carrying wind blades that are tiered. This means the ships can safely carry and stack more blades and taller cargoes. Secondly, the vessels feature unique proprietary technology called the ‘AAL eco-deck’, a retractable weather deck extension system allowing ships to boost their clear deck space to 5,630 square metres. Diversifying and enhancing in such a manner was a logical approach for AAL to take, these heavy lift vessels becoming a natural extension of its existing multipurpose fleet. Not only have they been purpose-built to deal with larger wind energy components, but the company’s engineers have already garnered significant experience working with these components, having already had to deal with blades up to 120 metres in length. Of course, this transition hasn’t all been plain sailing. The company has faced several challenges, impacted by the geopolitical landscape, cross-jurisdictional challenges, and the hurdles associated with regular third-party dealings. However, after years of effective planning, focussing on its core strengths and markets, and executing a sustainable growth strategy, the firm is now on the brink of welcoming its new Super B-Class fleet. From May 2024, AAL will start to take delivery of the six new, revolutionary, multi-purpose heavy lift vessels – a delivery schedule that is anticipated to span over the course of the following 18 months. With each vessel set to provide a heavy lift capability of up to 700 tonnes and a cargo intake of up to 42,000 cubic metres, the benefits they will bring to the company and economies of scale to its clients will be significant. With the vessels designed to be both safer and more efficient, they will be able to deliver
For industry ▸ Stay flexible – don’t pigeon yourself into one area of the energy sector. Broaden your experience first and then decide to specialise. For government ▸ Be tougher on companies and supply chains that breach sustainability and ethical business practices within their operations and partner selections.
AAL Shipping at a glance: Key products and services: maritime transport. Main industries served: ▸ Onshore renewable energy – 30% ▸ Conventional power – 10% ▸ Oil and gas – 10% ▸ Offshore renewable energy – 10% ▸ Others (non-energy) – 40% Headquarters: Singapore Year established: 1995 Number of employees: 115 Revenue: £316m Revenue from exports: N/A
components for greater economy and lower carbon emissions. Indeed, it’s estimated that a project which previously could have taken six sailings will now take just four with these new vessels, with clients expected to enjoy cost savings of approximately 15% as a result. Further, with more fluid cargo lifting and handling capabilities, safety is tantamount. And for AAL, this fleet of more efficient vessels is tailor-made for a growing industry that is expected to drive 25% revenue growth over the next five years. As the company looks set to accommodate a more diverse portfolio of project cargo sizes, it can also look ahead to working with an expanded client and revenue base.