The Maritime Standard UAE Yearbook 2016/17

Volume 1, Issue 1

UAE YEARBOOK 2016/17

2016/17

Since 2006, Abu Dhabi Ports has been the pulse of trade in the emirate by managing every commercial port in Abu Dhabi. By focusing on cutting-edge technology, world-class service and innovative partnerships, our entities are ensuring that everything is faster, safer and more cost-effective – which means that your needs are always in good hands.

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Contents

CONTENTS 07

COMMENT

08

GOVERNMENTAL STRATEGY

09

THE DUBAI MARITIME CITY AUTHORITY

10

CONTAINER PORTS

17

NON-CONTAINER PORTS

22

CRUISE PORTS

10

08

09

17 TMS UAE Yearbook 2016/17

There are exciting opportunities for growth in many different segments of the UAE’s maritime cluster

The Federal Transport Authority (FTA) is making progress on a number of different fronts

The Dubai Maritime City Authority is a vital component of government strategy, encouraging the development of shipping and related activities

Terminals in Dubai, Sharjah and Abu Dhabi have experienced relatively high levels of growth in recent years

The leading general and bulk cargo handling centres in the UAE are experiencing significant ongoing growth in traffic flows, triggering spending on new berths and equipment

Investment is boosting cruise passenger numbers in Abu Dhabi and Mina Rashid, while the ferry sector has been boosted by new services 1

Contents

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SHIPOWNERS & OPERATORS Global changes in the container shipping business are presenting UASC with a series of challenges and opportunities While other sectors are going through a tough time, tanker operations are performing relatively well for UAE-based companies active in this segment

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32

SHIPBUILDING

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CLASSIFICATION

The UAE is home to some of the busiest shiprepair and newbuilding yards in the Middle East

Befitting its position as one of the world’s leading maritime centres, most of the world’s leading classification societies have a strong presence in the UAE, including market leading DNV GL The UAE’s own classification society, Tasneef, aims to become a market leader across the GCC region

32

38

OFFSHORE

43

LEGAL

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The UAE is home to a number of companies specialising in offshore services and, despite difficult market conditions, most report positive business trends

Proposed updates to the Maritime Law are being welcomed by legal experts as likely to make it more attractive for shipping firms to do business in the UAE Fichte & Co is expanding its legal business in several different directions

49

MARITIME INDUSTRIES Steady growth for Islamic P&I Club McQuilling expands Dubai-based team DTA maintains leading position Clarksons Platou set for sustained period of growth

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49

Nasco Middle East holds its own

Tel: +971 4 380 5556 Fax: +971 4 380 5509 Email: info@themaritimestandard.com Managing Director & Publisher: Trevor Pereira Editor: Clive Woodbridge Manager-Marketing & Public Relations: Ammaar Murtaza Moosa Design and Production: Nick Blaxill Published by: The Maritime Standard FZE PO Box 25980, Dubai, UAE.

TMS UAE Yearbook 2016/17

Copyright © 2016 The Maritime Standard.

All rights reserved.

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 Fujairah Free Zone Licence No.: 5568/2014 Printed by: Emirates Printing Press, Dubai

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without prior written permission of the copyright owner.

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Comment

Exciting times ahead for the UAE maritime sector Pictured above: Tristar, which recently took delivery of Silver Manoora, the first of six new ships it has on order in Korea, is one of the rising names in the UAE shipping scene

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here are significant opportunities for anyone involved in the UAE maritime sector over the next few years. The country’s leadership has identified shipping and maritime activities as an important area for the country’s future economic growth and diversification, providing resilience to the economy in uncertain times and valuable employment for local people, as well as expatriates. Organisations such as the Federal Transport Agency (FTA) and Dubai Maritime City Authority (DMCA) are setting an exciting agenda for change, which shows that those in authority have a clear idea of where they want to go and what they want to achieve. This includes the expansion of maritime training facilities, and also upgrading legal and other service support structures, that will allow other sectors to flourish.

The engine-room for UAE maritime development comes to a large extent from its ports, with Dubai’s Jebel Ali being by some way the biggest gateway and

TMS UAE Yearbook 2016/17

transhipment port in the Middle East region. Over the past three years Jebel Ali’s container capacity has increased by a third, from 14 million teu to 19 million teu a year, mainly as a result of the Terminal 3 development.

By 2018, this will rise again to over 22 million teu with the completion of the first phase of Terminal 4. This expansion is in line with the increase in the number of ‘mega ships’ arriving at the port and is also being driven by an anticipated growth in trade in the run-up to World Expo 2020 in Dubai.

Container port growth Abu Dhabi’s Khalifa Port has also expanded in leaps and bounds, and is one of the fastest growing container ports anywhere in the world right now. Further investment is on the way here, as it is at Khorfakkan where Gulftainer is positioning itself to take advantage of ongoing changes to consortia arrangements. It is not just container ports that are benefiting from investment

5

Comment

in infrastructure and equipment, however. Fujairah, Ras Al Khaimah and Ajman are also witnessing higher levels of dry and liquid bulk movements as well as general cargo traffic. Passenger facilities, particularly cruise terminals in Dubai and Abu Dhabi, are increasingly busy as the UAE becomes a more attractive cruise destination.

The UAE is home to some important shipping companies in the container, tanker and offshore shipping markets. United Arab Shipping Company (UASC) is close to completing one of the biggest investment programmes ever by a Middle East-based shipping firm, but faces an uncertain future as a result of its recently confirmed merger with Hapag-Lloyd. Dubaibased Tristar is indeed a ‘rising star‘ within the business,

TMS UAE Yearbook 2016/17

having grown by acquisition and investment in new ships, while a new era dawns for Gulf Navigation under new management. Tanker and bulk cargo owners, such as Emarat Maritime, Gulf Energy Maritime (GEM) and ADNATCO-NGSCO, are also influential, not just regionally but on a wider platform.

Above: Jebel Ali continues to strengthen its position as the Middle East’s leading container hub

Shipyard services

One of the sources of the UAE’s success in the maritime business is the fact that it has encouraged the growth of a cluster of supports services

Shipyards in the UAE offer a diverse range of services, and capabilities, and are now well regarded worldwide.

Drydocks World Dubai and Abu Dhabi Ship Building (ADSB) have both been busy, and will be working more closely together in future to provide a stronger offering to many markets, including the offshore and naval sectors.

Elsewhere, several smaller, but highly active, privately owned operations, such as Damen Shipyard Sharjah and Grandweld, continue to carve out a significant niche for building and repairing specialised ships.

One of the sources of the UAE’s success in the maritime business is the fact that it has encouraged the growth of a cluster of supports services.

As readers will see in this publication, the country is the base for dynamic classification, insurance, shipbroking, agency, shiprecycling and technical services companies. There is tremendous synergy between these various strands, and with the encouragement of the UAE government, the existence of these complementary business elements will provide the basis for long-term growth for years to come.

Clive Woodbridge, Editor

Left: Mohammed Al Muallem, senior vice president and managing director, DP World UAE Region

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FTA

The FTA-Land and Maritime division aims to sustain the recent increase in both ship numbers and capacity of the UAE registry

HE Dr Abdullah Salem Alkatheeri director general of the FTA – Land & Maritime

FTA makes progress on several fronts The Federal Transport Authority (FTA) – Land & Maritime is playing a key strategic and regulatory role enhancing the competitiveness of the UAE’s maritime transport sector

In particular, the committee will compare the UAE’s maritime laws with that of other countries.

HE Dr Abdullah Salem Al Katheeri, director general of the FTA – Land & Maritime, says: “The Maritime Law review is a top priority for us this year. The existing laws are outdated as they have not changed since 1981.”

The FTA-Land and Maritime division aims to sustain this recent increase in both ship numbers and capacity of the UAE registry. HE Dr Al Katheeri says: “We want to overcome any obstacles that exist to making the UAE flag more attractive to shipowners. For that reason it is time to change our laws and regulations to bring them into line with the best practices in the industry.”

O The Maritime Law review is a top priority for us this year – HE Dr Abdullah Salem Alkatheeri, FTA – Land & Maritime 8

ver the past year the FTA has achieved a number of important milestones within the maritime transport sector. It has, for example, established a Technical Council for Maritime Transport which specialises in maritime matters within the UAE, covering both ports and shipping fleets. Its brief is to take steps to improve this sector and establish effective dialogue with strategic partners in the UAE. In another important initiative, the FTA has launched a review of the country’s Commercial Maritime Law, under the aegis of the Technical Council for Maritime Transport, which has established a dedicated review and update committee. This will study the latest version of the draft law and enter any amendments required to cope with developments and changes in the maritime sector.

TMS UAE Yearbook 2016/17

Dubai Maritime City Authority

DMCA spearheads maritime strategy The Dubai Maritime City Authority is a vital component of government strategy, encouraging the development of shipping and related activities

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The Dubai Maritime Sector Strategy is reshaping the local maritime landscape with its focus on attaining the highest levels of leadership, customer service, innovation, safety and human capital

n 2015, maritime activities accounted for AED14.4 billion, or nearly 4.6%, of Dubai’s GDP, with maritime operations, engineering, ports and shipping, maritime recreational services and various offshore activities all contributing significantly. The maritime industry is responsible for around 75,000 jobs, especially in operations and engineering, and ports, which accounted for 51% and 25% respectively of employment in this sector.

To further enhance this already impressive achievement, the Dubai Maritime City Authority (DMCA) has introduced the Dubai Maritime Sector Strategy (MSS) which aims to position Dubai so that it will rank among the world’s seven biggest maritime centres by 2020. It is currently in the Top Ten. According to Amer Ali, executive director of DMCA: “MSS is currently reshaping the local maritime landscape with its focus on attaining the highest levels of leadership, customer service, innovation, safety and human capital. It is already positively impacting local GDP growth rate and is advancing the DMCA’s key role in Dubai’s overall development.“ As well as championing the MSS, DMCA is playing an important role in other respects. It has, for instance, been instrumental in raising Dubai’s profile by organising several international forums, such as Dubai Maritime Week, Dubai Maritime Summit and Dubai Maritime Agenda. Moreover, it has made a valuable contribution towards advancing Dubai’s ‘Smart City’ vision. “We have introduced our ‘Smart Marine Services Platform’ to provide a number of advanced electronic services to the public, as well as an electronic information and knowledge system called Dubai Maritime Intelligence to further drive the efficiency and competitiveness of Dubai’s maritime sector,” says Mr Ali.

Key information The recently launched Dubai Maritime Intelligence platform aims at improving and broadening maritime knowledge. Mr Ali explains: “This platform falls under our Maritime Creativity Lab initiative and provides access to key information on craft maintenance, conversion and construction, the movement of commercial and leisure vessels, and maritime demographics, among others. This is an important initiative because it will significantly expand the maritime knowledge base, and advances Dubai’s ‘Smart City’ vision.”

TMS UAE Yearbook 2016/17

We are striving to create a safe and vibrant maritime environment in Dubai – Amer Ali, DMCA In addition, the DMCA is steadily establishing Dubai as a hub for maritime manpower development through the Dubai Maritime Training Centre, and has recently raised Dubai’s stature though the setting up of the Emirates Maritime Arbitration Centre.

Higher customer satisfaction Mr Ali says: “We are striving to create a safe and vibrant maritime environment in Dubai that will eventually bring higher customer satisfaction, enhanced cooperation with all government and non-government parties involved in the maritime industry, and more investment opportunities with high yield in the local maritime sector.

We are also here to ensure compliance with international environmental and maritime standards and help create a safe and secure operation for all marine craft activities in the emirate’s territorial waters.”

One of the key aims of the DMCA is to continue to create more job opportunities to boost the emirate’s GDP. Mr Ali concludes: “We are particularly adept at providing excellent port and logistics services and will further reinforce our capabilities and resources in this area. We will continue to work hard to develop all the components of the local maritime sector and the recruitment of those with promise and potential will help accelerate the pace of transforming Dubai to one of the most advanced maritime centres in the world.”

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Container ports

Container ports sustain positive performance Terminals in Dubai, Sharjah and Abu Dhabi have experienced relatively high levels of growth in recent years

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ubai’s Jebel Ali is the biggest container port in the Middle East, and one of the top ten worldwide. Its dominant role as a gateway for local traffic, as well as a regional hub serving the Gulf and the Indian Subcontinent, is complemented by Khor Fakkan on the east coast, which is a prominent container transhipment centre, as well as Khalifa port in Abu Dhabi. The latter has made enormous strides since being opened three years ago and is serving the fast growing local industrial market as well as consumers in Abu Dhabi.

Last year Jebel Ali handled around 15.6 million teu, up 2.3% compared with the 15.24 million teu recorded

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for 2014. Utilisation levels at the port remained relatively high, at around 90%, despite a softening of volumes in the fourth quarter of 2015. Market conditions generally in the second half of 2015 were “challenging”, DP World reports, with throughput growth stalling due to regional trade patterns.

Healthy imports According to Mohammed Al Muallem, DP World senior vice president and managing director, UAE region: “Our UAE import business was healthy throughout the year, but transhipment levels were weaker due to regional economic fluctuations. The low oil price did start to affect consumption across the GCC and that was reflected in volumes towards the end of last year.”

This slowdown has continued into the first quarter of 2016. Within the UAE, DP World handled 3.6 million teu between January and March, down 5.9% year-on-year. It

TMS UAE Yearbook 2016/17

Container ports

depth of 18 m, designed to accommodate the largest new-generation container vessels.

Phase 1 of CT4 will add 3.1 million teu of capacity by 2018, taking Jebel Ali’s total annual container throughput capacity to 22.1 million teu. The port will be equipped with at least 110 cranes and will have a total quay length of around 11,000 m at that time.

Phase 1 will feature 13 of the world’s largest modern quayside gantry cranes, which will be remotely operated from a control room located away from the quayside, as well as 35 Automated Rail Mounted Gantry (RMG) cranes, which will operate in the yard areas.

DP World intends to further expand CT4’s capacity to a total of 7.8 million teu a year, in line with market demand, under a planned Phase 2. This will include an additional quay length of 1,000 m and associated yard areas that will be built by Dutco Balfour Beatty.

This latest phase of expansion at Jebel Ali is needed, DP World believes, to ensure it continues to provide the capacity its customers require. “The economic fundamentals in the UAE are good,” says Mr Al Muallem. ”So this additional capacity will be vital to meet the requirements of the country, especially as we get closer to hosting the World Expo in 2020. The new terminal will be ready in time to meet the expected increase in trade over the next five years and to ensure Jebel Ali port reinforces its position as the top commercial gateway to this region.”

Productivity improvements

Jebel Ali port is handling more large, new generation container vessels than ever before

attributes this dip to the loss of some lower-margin cargo, as a result of a strategic decision to focus more on higher margin traffic, as well as regional economic factors.

DP World has a long-standing policy of building ahead of demand and is continuing to invest in port infrastructure and equipment at Jebel Ali. Further capacity will come on stream later in 2016, when the 4 million capacity teu CT3 will be fully operational, giving Jebel Ali the capability to accommodate ten mega containerships simultaneously and an overall capacity of 19 million teu.

Work has recently also started on building Jebel Ali port’s new CT4, which will be constructed on a reclaimed island. For Phase 1 of this project, Dutco Balfour Beatty has been contracted to build a 1,200 m long quay and associated yard areas, while BAM International Abu Dhabi will build a 400 m bridge and adjacent causeways, as well as a 2.2 km quay wall with an alongside water

TMS UAE Yearbook 2016/17

Work has recently started on building Jebel Ali port’s new CT4, which will be constructed on a reclaimed island

As well as expanding physical capacity, DP World has implemented an operational review to further improve efficiency. According to Mr Al Muallem: “We have seen some significant improvements in productivity at Jebel Ali in recent years and we have to sustain that trend.”

DP World has also invested further in semiautomated cranes for CT3. Mr Al Muallem adds: “These systems are safer and more accurate, and our aim going forward is to automate as much of our operations as possible. We will utilise similar systems at CT4, but these will be even more effective as we will incorporate the lessons we have learned from our experiences to date at CT3.”

The Gulftainer-operated Khorfakkan Container Terminal (KCT) is the second busiest container terminal in the UAE. While Gulftainer does not release specific figures for individual terminals, its two Sharjah terminals – KCT and Sharjah Container Terminal (SCT) – together handled around 4 million teu last year. This was around 9% higher than the year before, with both terminals outperforming most other container handling facilities in the Middle East. Further organic growth derived from the existing customer base has been evident in the first quarter of 2016, Gulftainer reports.

KCT is a transhipment-orientated terminal with a small core group of long-term, major shipping line customers, including UASC and CMA CGM. Both of these operators are deploying some of their largest vessels on services calling at KCT. Earlier this year, for

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Container ports

example, Gulftainer celebrated the maiden call of UASC’s 15,000 teu capacity Linah, which was at that point the largest vessel in the company’s fleet, to call at the UAE east coast port.

SCT, by contrast, has a much larger customer base, comprising more than 25 different lines, which primarily serve customers in the local Sharjah market.

These lines range from significant global operators, like APL and Maersk, to smaller regional operators, such as Ethiopian Shipping Line.

Flemming Dalgaard, Gulftainer chief executive officer, says: ”The Sharjah market is strong as there are a lot of infrastructure projects under way in the emirate.

Sharjah is also home to a number of SMEs and SCT has a niche serving these businesses, which generally find it is a lot easier to route cargo through our terminal rather than trucking via Abu Dhabi or Jebel Ali.”

Growing throughput Throughput at SCT has grown steadily over the past few years and it is now close to capacity. In addition, shipping lines are putting larger ships into services calling at the terminal, which is the oldest dedicated container facility in the region, having started operations in 1976. As a result of this healthy demand, Gulftainer is now investing heavily to upgrade SCT. Two ship-to-shore container cranes, considerably larger than those they are replacing, are now operational. The company has also extended and upgraded the yard areas. Mr Dalgaard says: “We are expanding both our capacity and capabilities at SCT. As a result, we will in future be able to handle more volume, up to 500,000 teu a year, as well as working these larger ships more quickly and efficiently.”

To support the newly delivered post-panamax Liebherr ship-to-shore cranes, Gulftainer is buying more rubber-tyred gantry (RTG) cranes for SCT. It is also taking steps to expand the size of the container storage space at the city centre port.

At KCT there are also investments being made in upgrading facilities, including two new super-postpanamax cranes and additional rail-mounted gantry (RMG) cranes. Furthermore, the port authority is in the process of building a new and expanded main gate facility.

Gulftainer points out that KCT is a strategic hub for the region and its future is being kept under constant review. Studies have been prepared detailing the next

TMS UAE Yearbook 2016/17

phase of development, although there is inevitably some uncertainty about future demand patterns at KCT, given the discussions that are taking place amongst leading shipping lines over future consortia arrangements. However Gulftainer believes it is in a strong position to benefit from these changes.

Mr Dalgaard says: ”There are both challenges and opportunities as the lines play musical chairs. We are confident that we remain in a strong position as we try and get as close as we can to our customers and be nimble and flexible in meeting their needs.”

Container volumes at KCT last year were up by around 9%

Trucking business As well as its container terminals in Sharjah, Gulftainer also has a thriving long-distance trucking business, Momentum Logistics, which currently has a fleet of around 100 vehicles serving markets across the GCC, including Oman and Saudi Arabia, as well as the UAE. In addition, Gulftainer continues to develop its Sharjah ICD business with two new warehouses being added recently to support customers there.

Gulftainer, which celebrates its 40th anniversary in 2016, has an international portfolio, including terminals in Saudi Arabia, Iraq, Brazil and the United States. Later this year it will also open up a facility in the Lebanese port of Tripoli, which could prove to be an important gateway not just for the Lebanese market but for a wider hinterland as well.

There is no doubt that Khalifa Port Container Terminal, which is operated by Abu Dhabi Terminals (ADT), a subsidiary of Abu Dhabi Ports (ADP), is the fastest growing of the UAE’s container facilities. In 2015, Khalifa port handled just over 1.5 million teu, a rise of 32% compared with 1.14 million teu in 2014. Ro-ro traffic at Khalifa port also registered a rapid rate of increase, with a 27% increase against the previous year.

The first quarter of 2016 has continued the port’s track record of above-average traffic growth. Container throughput was up by 5%, to 317,000 teu, suggesting another record-breaking year is in prospect.

ADT passed an important milestone on 13 March, 2016, when it handled the 4 millionth teu since the

There is no doubt that Khalifa Port Container Terminal... is the fastest growing of the UAE’s container facilities Left: Gulftainer is investing heavily to upgrade Sharjah Container Terminal with two new cranes recently installed here

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Container ports

Khalifa port in Abu Dhabi is one of the fastest growing container facilities worldwide

transition from Mina Zayed to Khalifa port in the third quarter of 2012; a remarkable achievement in a short timespan. The landmark container was loaded aboard the AS Carelia operated by X-Press Feeders.

Martijn van de Linde, chief executive of Abu Dhabi Terminals, says: “Since we moved to Khalifa port in 2012 we have achieved three consecutive years of doubledigit growth rates. This has led us to become the world’s second fastest growing port.”

Ro-ro traffic Over the first quarter of 2016 ro-ro traffic was also well up, again achieving a double-digit rate of growth, surging by over 30%. This illustrates the continued buoyancy of the local Abu Dhabi market for cars and other vehicles.

Transhipment services for ro-ro cargo have recently commenced by ADP at Khalifa port, and there has been further investment in vehicle storage, pre-delivery inspection and other facilities to provide a comprehensive range of service to vehicle traders.

The neighbouring Kizad industrial zone has been a key influence on demand at Khalifa port’s container and ro-ro terminals. The pace of development at Kizad is gathering momentum and over 20 factories are expected to open up in 2016/17, while four new customers started the construction of facilities within the zone during the first three months of 2016.

To support local customers, further investment is planned at the Khalifa Port Container Terminal, with ADP bringing in new container handling equipment over the next two years. Three new super-postpanamax ship-to-shore gantry cranes are on order for delivery later in 2016, along with ten more automated

TMS UAE Yearbook 2016/17

Our expansion strategy is demand driven – Capt Mohamed Juma Al Shamisi, ADP chief executive

stacking cranes. By the end of this year Khalifa port will have an annual capacity of 2.5 million teu. In addition, ADP is planning to widen the access channels and turning circles to a better accommodate longer, latestgeneration containerships, and will also extend the quay area at the port.

Capt Mohamed Juma Al Shamisi, ADP chief executive, says: “Our expansion strategy is demand driven. We are making heavy investments in upgrading infrastructure, implementing new technologies and buying new equipment to expand operations and better serve our customers.”

This year ADT has added 50,000 tonnes of additional warehouse space inside the container terminal to reinforce the growth of its logistics department and assist key customer Borouge. The company’s container equipment stock has been enhanced with the commissioning of more ro-ro trailers, goosenecks and tractors, while the terminal gate process has been redesigned to make it even easier for truckers to load and unload containers. “This improved process has already resulted in a 25% decrease in truck transaction time, thus significantly reducing transportation costs,” says Mr van der Linde.

A further important initiative that will benefit the port’s container business is the new Maqta Gateway port community system. This is expected to be fully operational by the end of 2016, and is claimed to be the first of its type in the region. The system offers shipping lines, shipping agents, customs agents, terminal operators and other government agencies a single point-of-access and real-time information across a wide range of services.

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Non-container port operations

Fujairah’s oil tanker berths have been extremely busy over the past few years

Cargo ports benefit from infrastructure investment The leading general and bulk cargo handling centres in the UAE are experiencing significant ongoing growth in traffic flows, triggering spending on new berths and equipment

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Ajman port, below, has gone from strength to strength since becoming part of the Hutchison Ports Holdings group

he UAE has three of the region’s largest container ports, in Jebel Ali in Dubai, Sharjah’s Khor Fakkan and Abu Dhabi’s Khalifa port. The country is, however, also home to some of the most important bulk and general cargo handling ports in the Middle East Gulf region, many of which are performing exceptionally well at the present time.

Over the past decade the Port of Fujairah has strengthened its position as one of the most important centres in the world for bunkering and maritime

TMS UAE Yearbook 2016/17

supplies, as well as becoming a key regional hub for oil trading activity. In addition, the UAE east coast port is a primary gateway for exports of rock aggregate to meet the demands of construction projects in Qatar and other Gulf countries.

Trade data from 2015 underlines the continued dynamism of the port’s performance in all these sectors. Last year, a total of 13,734 vessels called at the Fujairah Offshore Anchorage Area (FOOA), the majority to take on bunker fuel, ships’ supplies or to make crew changes. While this was slightly down on the 14,015 vessels recorded in 2014, it was still the second highest figure on record, a remarkable achievement given the downturn in many sectors of the shipping industry. By way of comparison ten years ago, in 2005, only 6,101 vessels called at the FOOA.

Aggregates business The port’s aggregates business is also relatively buoyant, with 19.65 million tonnes moved across the Fujairah bulk terminal quays, mainly by its two loader cranes, last year.

This represents a slight dip compared with the recordbreaking 20.27 million tonnes recorded the year before.

However, aggregates export volumes in 2015 were similarly the second highest ever achieved by Fujairah, easily surpassing the previous next best of 17.6 million tonnes handled in 2012.

The star performer for Fujairah in 2015, though, was its gas oil business. Last year the port moved 77.05 million tonnes of oil and oil products, up from 60.09 million tonnes in 2014, a leap of more than 28%.

This increase is being driven largely by ongoing private sector investment in oil storage tank facilities within the Fujairah port zone. By the end of 2016 Fujairah will

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Non-container port operations

have around 9 million cu m of tank storage, which will rise further to 15 million cu m by the end of 2018. This compares with the tank storage capacity of just over 4 million cu m that was operational at the end of 2012.

To meet the demands of its shipping and trading customers, Fujairah has invested consistently in port related infrastructure and continues to do so. In the 1980s Fujairah had just 370 m of berth. At the end of 2015 there were 6,160 m of operational quays in the port, following the commissioning of Oil Berths 8 and 9 in 2015, which added a further 930 m of berth space for tankers. Work is nearing completion on a new VLCC berth, with a 27 m draught alongside, which is due to be operational later this year, strengthening Fujairah’s position as a crude oil and oil products hub still further.

Other investments either recently completed by the port authority, or at the building stage include the Northern Oil Terminal breakwater, two smaller bunker barge berths and the creation of a new anchorage supply boat harbour. This will add to the potential for growth at the FOOA, together with the additional anchorage positions being created to the south of the area, through the moving of undersea telecommunication cables.

Private investment Private sector investment is also important in enhancing infrastructure at the port. In addition to the growth of private oil storage facilities, Fujairah will benefit from the development of a new grain terminal facility by Al Dahra and Louis Mills, which is expected to move to full operation later this year. Initially this is expected to generate around 200,000 tonnes a year of port traffic, rising to 1.8 million tonnes in future.

Recent years have also seen the completion of the ADCOP pipeline which allows Abu Dhabi’s ADNOC oil company to export through Fujairah without vessels

TMS UAE Yearbook 2016/17

having to pass through the Straits of Hormuz. This has had significant knock-on benefits for Fujairah port, both in terms of port calls and visits to the anchorage.

Looking to the future, Fujairah seems likely to receive a further boost from the development of the 200,000 barrels per day capacity Fujairah Refinery, which is expected to be operational in 2018. There are also plans by Emirates LNG to develop a regasification facility in Fujairah. This will import LNG from the international market to produce natural gas, which will be used primarily for local power generation projects.

A computer-generated image showing the new supply boat harbour under development at Fujairah

Saqr port Another primarily non-container, multipurpose port that is performing well is Saqr port in Ras Al Khaimah (RAK).

During 2015 the port handled 51.97 million tonnes of cargo, up 4.7% from 49.6 million tonnes the year before.

Saqr port handles a wide variety of cargo types, primarily importing and exporting raw materials and general cargo. The main export commodity handled at Saqr port is limestone and rock aggregate from various quarries within the UAE, and this business accounts for around 87% of all outbound port traffic. The main import commodity is coal, used mainly for cement factories all over the UAE, which accounted for over 40% of inbound movements last year. The port is heavily export orientated, with shipments outbound from the UAE accounting for around 90.5% of throughput in 2015, and imports just 9.5%.

Saqr port is equipped with the a total of 16 modern mobile harbour cranes, which can lift up to 65 tonnes in grab mode and 125 tonnes under the hook for general cargo. The port has recently acquired two new mobile harbour cranes to sustain high levels of productivity. The Liebherr LHM550 mobile harbour cranes, shipped from Rostock, Germany, were delivered this February, each having a 124-tonne

Fujairah seems likely to receive a further boost from the development of the 200,000 barrels per day capacity Fujairah Refinery, which is expected to be operational in 2018 19

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Non-container port operations

lifting capacity under the hook at an 11m radius.

Last year Saqr port handled around 1,770 vessels, most of which loaded between 40,000 to 60,000 tonnes of limestone or aggregates, with port stays of 24 to 40 hours. The port has recently worked its largest ever export shipment, on the bulk carrier AOM Elena, which left the port with 90,000 tonnes of limestone bound for a client in Qatar.

Saqr port at present has 12 berths, as well as a single berth that facilitates the operations of the RAK Rock conveyor. The Saqr Port Authority (SPA) anticipates handling 55 million tonnes through these berths in 2016, which would be not far from maximum capacity.

During 2016 the SPA will begin work on a new deepwater berth with a draught alongside of 18 m. This investment will allow the port to handle Capesize vessels and will meet growing demand for quarried products from RAK, which are used in a number of markets worldwide, including large scale infrastructure projects across the Middle East area.

Port expansion Captain Cliff Brand, RAK Ports general manager, says: ”As Saqr port is operating nearly at capacity, the decision has been taken to push ahead with the expansion of the port.

In addition, further investment in heavy plant and equipment will also be made, taking the overall project value to more than AED300 million. The new berth should be completed in 18 months and will increase the port’s annual capacity by a further 10 million tonnes.”

Abu Dhabi’s Zayed port is now heavily focused on bulk, general cargo, project and cruiseship business since container and ro-ro traffic was transferred to Khalifa port. Last year general and bulk cargo movements handled by the Abu Dhabi Ports increased by around 20%, while cruise tourism was up by 16%.

During the first quarter of 2016, general and bulk cargo was up by a further 13% compared with the equivalent months of 2015. The port is particularly strong in handling oil and gas industry related traffic, as well as food cargoes.

The increased volume of general and bulk cargo reflects the high level of industrial and infrastructure development projects in the Emirate of Abu Dhabi.

TMS UAE Yearbook 2016/17

Zayed port, the oldest commercial port and the main city port for the past four decades, aims to become the premier regional hub for the cruise industry as well as for general and bulk cargo. It is complemented by Musaffah port, the second oldest port in Abu Dhabi, which also provides cargo operations and warehousing.

A new channel, nearly twice as deep as the previous channel, provides unlimited air draught and two-way movement for large commercial vessels.

In 2012, Hutchison Ajman International Terminals (HAJT) took over the management of Ajman port, located on the coast of the Arabian Gulf, and since then the port has raised its regional profile, taking advantage of its favourable geographic location. The port is 25 km from Dubai and 10 km from Sharjah, where most of the UAE’s manufacturing and trading companies are situated. As a result it serves markets across the UAE, as well as locally. The port is benefiting from the infrastructure developments that are making Ajman one of the faster growing emirates.

New mobile harbour cranes were used to handle the AOM Elena in February 2016, which shipped the largest single export contingent moved through Saqr port

Improved efficiency Following the transfer of industry best practices by port company Hutchison Port Holdings, HAJT has improved operational efficiency through the effective allocation of resources and the introduction of new equipment, including reachstackers, forklifts and rubber-tyred gantry cranes (RTGs). This February HAJT reached an important milestone by receiving three brand new hybrid RTGs. HAJT has also introduced a computerised Terminal Operation System (TOS) which provides real-time information to maintain smooth terminal operations.

Ajman port offers a variety of services, including container handling and general cargo stevedoring. It also provides cargo consolidation and deconsolidation, large warehouse facilities covering an area of over 50,000 sq m, reefer facilities and bulk cargo services.

According to a spokesperson for HAJT: “These developments have placed Ajman port as a one-stopshop on the Arabian Gulf. We are committed to continued investment in infrastructure and logistics support to maximise Ajman’s capability to perform as an efficient port of call in the Middle East region.”

As Saqr port is operating nearly at capacity, the decision has been taken to push ahead with the expansion of the port Left: Abu Dhabi’s Zayed port is now heavily focused on bulk, general cargo, project and cruiseship business

21

Cruise and ferry

Investment to boost passenger numbers The opening of a brand new passenger terminal last year in Abu Dhabi is expected to accelerate the emirate’s fast growing cruise business, while Dubai is also pressing on with investment at Mina Rashid

A

Pictured is the newly opened Mina Zayed Cruise Terminal in Abu Dhabi which is attracting calls from a number of leading operators

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bu Dhabi Ports’ efforts to make Mina Zayed a regional cruise hub appear to be paying dividends. Last year the port handled over 170,000 passengers, 16% up on the year before. Based on port calls already scheduled by leading cruise operators, the expectation is that a further 20% increase in passenger numbers will be recorded this year.

A striking new state-of-the-art cruise terminal was opened at Mina Zayed in December 2015. Designed to enable Abu Dhabi Ports to serve the increasing number of cruise liners and passengers visiting the Emirate, the flexible and environmentally friendly design of the facility makes this a standout project.

Towards the end of last year, the terminal hosted three cruise vessels on the same day – Island Sky, owned

by Noble Caledonia, Hapag Lloyd’s Europa 2, and Seven Seas Voyager, owned by Regent Seven Seas Cruises. Such multiple vessel calls are expected to become increasingly common, the port says, making the investment in additional cruise terminal infrastructure a necessity.

Mina Zayed handled 113 cruise ships, carrying more than 231,000 passengers, during the 2015/2016 season. This represents a 500% increase in the number of passengers and ships visiting Abu Dhabi since the first cruise season in 2006-2007. Further growth projections mean passenger numbers are likely to reach more than 300,000, on around 130 cruiseship calls, by the 2019-2020 season.

For this coming season, 2016/17, the terminal already has 147 calls confirmed, which are likely to bring over

250,000 passengers through the terminal. Leading operators with booked calls include MSC Cruises, Crystal Cruises, Seaborne, Noble Caledonian and Aida. At least two ships, MSC Musica and Aida Bella, will be homeported in Abu Dhabi for the season.

The new terminal building offers many passengerfriendly facilities including tourist information services and a passport border control counter, as well as seamless links to Etihad Airlines flights through check-in facilities on site. The eco-friendly building celebrates the UAE’s cultural heritage and pays tribute to its long maritime history. A particular eye-catcher is the building’s roof design which is a lattice-work, taking the UAE’s national tree, the Ghaf, as inspiration. Wooden beams inside the building take inspiration from the UAE’s traditional dhow sailing vessels.

Island beach resort Alongside the new terminal, a further boost to Abu Dhabi’s cruise fortunes will come from the launch of the Sir Bani Yas Island beach resort, which is being developed by the government of Abu Dhabi. A 1.5 mile-long stretch of land on the natural island just off the southwest coast of Abu Dhabi has been transformed into a beach oasis destination, exclusively for the use of MSC Cruises guests.

MSC Fantasia, one of the company’s largest and newest ships, will serve the island starting December 2016 on cruises from both Abu Dhabi and Dubai.

MSC Cruises has been working on perfecting this destination, together with Abu Dhabi Ports, for over two years. The tropical beach oasis is on a smaller island connected to the main island by a wooden boardwalk that secures exclusive access to MSC Cruises guests to a beach holiday experience, with hundreds of palm trees, shaded cabanas and over 2,000 sunbeds across 36,000 sq m of fine golden beaches. The MSC Cruises beach oasis will also offer direct access to a nature reserve with a range of

TMS UAE Yearbook 2016/17

Cruise and ferry

Jalboot pioneers Abu Dhabi passenger ferry services Launched in October 2015, Abu Dhabi’s new Jalboot ferry – the emirate’s only private scheduled passenger service – has been warmly received and the operator is already planning fleet and network expansions before the end of 2016 specially designed excursions that will allow guests to experience the beauty of the natural surroundings. These include a horse-riding tour, a safari-style nature drive through the reserve, as well as a Dhow tour around the island in a traditional powered boat, giving guests the opportunity to see giraffes, hyenas and cheetahs in their natural habitat.

Finally, there are ongoing archaeological excavations taking place on the island. So for guests who want to discover more about the history and the culture of the island, a dedicated tour to the ruins of an early Christian monastery site from 6th century AD will be available.

Not to be outshone, Dubai – which is the region’s leading cruise hub – is aiming to reach a target of 1 million cruise passengers a year by 2020, according to Sultan Ahmed bin Sulayem, chairman and chief executive officer of DP World and chairman of Ports, Customs and Free Zone Corporation. Expansion work is currently taking place at its Mina Rashid cruise terminal to facilitate the growth.

Cruise growth Cruise tourism in Dubai has been growing rapidly, rising from seven cruise vessels carrying 5,626 passengers in the 2001-2002 season to 134 ships and more than 500,000 passengers in the most recent season. The trend is set to continue in 2016-2017, with 155 cruise vessel calls and 650,000 passengers likely to be achieved.

“To ensure the facility reaches its optimal capacity and to further facilitate passengers’ access to the terminals, more berths are being allocated, existing terminals are being linked via a high-tech tubes system, and an additional terminal is being built,” says Mr bin Sulayem. “We are committed to investing in the transformation of Mina Rashid into the cruise destination of choice for cruise liners.” The ongoing Mina Rashid development project will strengthen Dubai’s position as a global city and the premier cruise hub in the world, he adds.

Mina Rashid Cruise Terminal is spread across 2 million sq m and is currently equipped to handle seven large cruise vessels, with up to 25,000 passengers, at the same time. The newest facility, the Hamdan bin Mohammed Cruise Terminal, was inaugurated in 2014. It is the world’s largest single, covered cruise facility and is capable of handling 14,000 cruise passengers a day.

TMS UAE Yearbook 2016/17

J

alboot Marine Network, a company set up in 2013 as a subsidiary of Emirates Consortium, is already making its mark as a provider of passenger shipping services in Abu Dhabi. The company is currently operating a catamaran type fast ferry, Al Dana, which operates a route taking in Abu Dhabi Mall, Yas Marina, Fairmont Bab Al Bahr and Etihad Towers. The service is being used by residents as an alternative to road transport, while visitors are using it to get a waterborne perspective of the capital and its surrounds, and to reach tourist destinations with ease.

Rob Chinman, head of sales & marketing, says: “The new venture has been positively received and we will add a second vessel during 2016. We are also looking to include additional stops within Abu Dhabi to capitalise on the power of having a genuine transport network.”

Al Dana, manufactured from GRP, and with a capacity of 40 passengers and crew, was built in Dubai to a design provided by an award-winning European boatbuilder. The launch ferry is fully airconditioned and features leather, business class-style seating. The design incorporates fuel-efficient Volvo Penta engines, a high-speed jet propulsion system, onboard waste storage and is MARPOL compliant.

Rob Chinman, head of sales and marketing at Jalboot

The Jalboot high speed ferry, Al Dana

In a move to avoid passengers having to queue, Jalboot offers the option to pay using a 24 x 7 call centre, sales kiosks and mobile card payments, and claims to be the first SME in the GCC to implement the mobile Point of Sales system (mPOS) technology powered by Etisalat and NBAD. “The ‘chip ‘n pin’ system is a secure and reliable means to buy tickets on the spot with cash or card while the tickets are printed on the sales receipt and also emailed to the passengers. The crew have on-board scanners to verify tickets, whether printed or presented on a smartphone screen,” explains Mr Chinman.

Jalboot is the first passenger operator to receive a ‘no objection’ certificate (NOC) from the Abu Dhabi Department of Transport and it believes there is tremendous scope for further growth, for example by offering services to the new Sir Bani Yas Island resort facility. A second sister vessel to Al Dana is under construction, and is due for delivery before the end of 2016. Eventually the company plans to build larger catamaran ferry types, with capacities up to 100 passengers, as part of its next development phase.

Mr Chinman adds: “In a further phase of our expansion plans we intend to start to offer services outside of Abu Dhabi, linking the emirate with Dubai and Qatar for example. Even further ahead, we may also look to offer passenger and freight services on certain routes.”

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Shipowners & operators

Pivotal year ahead for UASC Global changes in the container shipping business are presenting UASC with a series of challenges and opportunities Above: The 18,800 teu Al Nefud, now operating on the Asia-Europe trade lane

T

he next 12 months will be extremely important for United Arab Shipping Company (UASC), which has its main operational headquarters in Dubai. The shipping line has recently concluded merger talks with Hapag-Lloyd of Germany and will also this year complete one of the biggest investment programmes ever carried out by a Middle East-based shipping company.

On June 29 this year, UASC shareholders voted to approve the proposed merger, with 72% of the value of the combined business going to Hapag-Lloyd and 28% to UASC. Some legal and administrative tasks need to be completed before a binding agreement can be reached and regulatory approvals also have to be obtained. While this process is under way both companies will continue to operate separately as at present, and will remain in their current alliances until the end of March 2017.

The recently concluded negotiations between UASC and Hapag-Lloyd are only one of several examples of further consolidation within the container shipping industry, either through merger and acquisition activity or

significant changes to global shipping line consortia arrangements. The newly announced Ocean Alliance will incorporate UASC’s current Ocean 3 partners, CMA CGM, which has just taken over Neptune Orient Lines (NOL), and China Shipping, which is merging with Cosco.

New consortium Another new consortium, THE Alliance, is planned to include Mitsui O.S.K (MOL), Nippon Yusen Kaisha (NYK), “K” Line, Hanjin, Hapag-Lloyd and Yang Ming. These six lines have agreed to create a new alliance covering all the East-West trade lanes, in a five-year deal. It is anticipated that UASC and possibly HMM will eventually become part of THE Alliance.

This new consortium will create one of the leading networks in the container shipping industry with around an 18% share of global container fleet capacity. This will increase to above 20% if UASC’s participation is confirmed. A statement from the carriers promises enhanced port coverage in the Middle East, as well as very attractive transit times for all shippers in the EastWest trade lanes.

A deal between UASC and Hapag-Lloyd would seem to have advantages for both partners. From a strategic perspective, UASC would have access to an extensive network operated by long established operators, which have strengths in various key markets in Europe, Asia, and

THE Alliance consortium will increase its share of global container fleet capacity to above 20% if UASC’s participation is confirmed.

TMS UAE Yearbook 2016/17

25

Shipowners & operators

the Americas. Its prospective partners would benefit from the fact that UASC would bring to the table a young, modern fleet of large capacity and environmentally superior vessels, as well as a strong presence in the Middle Eastern container trades.

UASC is in the midst of a US$2.36 billion fleet investment programme that totals 17 ships for delivery between November 2014 and the end of 2016. This comprises eleven 15,000 teu vessels and six 18,800 teu class ships, all of which are extremely environmentally friendly. To date, UASC has taken delivery of all six 18,800 teu class vessels – Barzan, Al Muraykh, Al Nefud, Al Zubara, Al Dahna and Tihama – and eight 15,000 teu class ships – Sajir, Al Murabba, Salahuddin, Linah, Al Nasriyah, Al Dhail, Al Mashrab, and Al Jasrah. The remaining three 15,000 teu ships will be handed over in the coming months. The 15,000 teu and 18,800 teu vessels were some of the first in the world to receive an Energy Efficiency Certificate with documented Energy Efficiency Design Index (EEDI), while the larger vessels are delivered ‘LNG-ready’ so that they can be converted to run on dual fuel when the time is right.

Last year was a challenging trading year for UASC, as it was for the majority of container shipping lines. As Jorn Hinge, president and chief executive, reflects: “In 2015 we saw freight rates fall on all trades, with negative market growth on the core Asia-Europe sector. This, combined with the number of new vessels delivered, led to a widespread overcapacity issues.”

A key highlight for UASC was the arrival of the new ships, which are starting to have a positive impact on bottom line performance. Mr Hinge says: “The ships are bigger, delivering economies of scale, and are more fuel efficient. They are out-performing the already high expectations we had for them. The arrival of these ships has come at the right time, and we were able to secure

Jorn Hinge, UASC president and chief executive

TMS UAE Yearbook 2016/17

them at the right price and at the optimum specification for our trades.”

Bunker prices have been relatively low for most of the past year, and so the benefits of the fuel efficiency of the new vessels have yet to be fully appreciated. Mr Hinge adds: “I am very happy with these ships, which have delivered a constantly good performance since they were delivered. The lower bunker prices has meant the gap between these new ships and older tonnage has been less than anticipated, but they will give us an important competitive edge as the bunker prices move higher again.”

UASC has invested heavily in new reefer containers

New ships As well as investing in these new ships, UASC took delivery of 5,500 new reefer units with Daikin equipment last year. These are primarily intended to provide increased capacity on routes from South America to the United States East Coast. UASC has developed a strong presence in the South American market thanks to its strategic partnership with Hamburg Sud. To support this business, UASC has recently set up a joint venture agency in Uruguay and is planning for further growth in Brazil as well as Argentina.

In terms of new shipping services, the past 12 months have been relatively quiet, as the priority has been to incorporate the new vessels being delivered and adapt existing operations to the chronic overcapacity situation.

However, in recent months, UASC has started several new services. For example the IMEX service connects the Indian Subcontinent, Arabian Gulf, Red Sea and Mediterranean and the MENA service links the Mediterranean to the US East Coast. Slots have also been purchased on CMA CGM’s Indian Subcontinent – US East Coast Service, connecting key ports in the Indian subcontinent, the Mediterranean and the US East Coast, and capacity has been increased on the IEC 1 service connecting North, Central and South China and South East Asia to North Europe. Last September, UASC launched two new West Africa services (WAF 2 and WAF3), enhancing schedule reliability and transit times to meet the growing demand in this market.

UASC has been investing heavily in refrigerated containers, taking in 5,500 new reefers with Daikin equipment last year 27

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Shipowners & operators

class oil products tankers. The bulk carrier fleet includes five super Handymax ships, a Handymax and an Ultramax carrier. All of these trade worldwide.

Capt Jitendra Misra, managing director, says: “Our tanker fleet enjoyed a very good 2015, a trend which has continued into this year. However, for bulk carriers last year was the worst ever. We do not expect to see a significant improvement in 2016.”

The reason, he explains, is a combination of too many ships and a slowdown in many dry bulk trades. “There is limited cargo growth and a surplus of bulk carriers,” adds Capt Misra. “The fallout is being felt across the shipping industry and it is going to be a difficult market for some time yet for the bulk shipping business.”

There are some more positive trends, however. Capt Misra points out: “This year we have seen very high scrapping so far and if the freight market continues to remain under pressure, vessels will continue to be sold for demolition and we will probably have a record year in terms of tonnage scrapped. Coupled with the slippage and cancellations of newbuilding orders, we just might see a healthier dry bulk market by the end of this year or early 2017.”

Waiting game

Tankers give owners cause for optimism While other sectors are going through a tough time, tanker operations are performing relatively well for UAE-based companies active in this segment Above: One of Emarat’ Maritime’s bulk carriers, the 55,000 dwt Dubai Galactic

O

ne of the leading operators of tankers and bulk carriers based in the UAE, Emarat Maritime, is cautiously optimistic about the future of the liquid bulk side of its operations at least.

Established in 1990 and part of the diversified Sharaf Group, Emarat Maritime has refocused its fleet in recent times to concentrate more on the tanker shipping market. Having sold a number of older bulkers, the company currently has a fleet of 13 vessels, including six tankers and seven bulk carriers.

The tanker fleet is relatively young, with all vessels having been constructed between 2009 and 2011, and includes four Aframax-class crude oil tankers and two LR2

TMS UAE Yearbook 2016/17

The company is currently evaluating its policy towards the dry bulk sector. “We are keeping our options open for now,” says Capt Misra. “At the appropriate time we will have to make a decision. Whilst asset prices are probably at their lowest, the freight market still remains under pressure, making buying or selling bulk carriers a losing proposition. We are therefore taking a wait-and-see approach for now and at the right time we will make our move. But we need to see a bit more stability in the market first.”

In the tanker market, Emarat Maritime is enjoying more success with good volumes of business and healthy freight rates, and Capt Misra is optimistic that the company’s performance in this sector in 2016 will be as good as in 2015 at least. “There is an element of uncertainty caused by volatility in oil prices and the effect of Iran re-entering the market. But based on the first few months of 2016, it looks as if the year will remain positive for our tanker business,” he says.

Also focusing on the tanker market is the UAE-based logistics group, Tristar, which is growing both by acquisition and investment in new tonnage.

In recent months, Tristar has agreed to acquire Abu Dhabi-based Emirates Ship Investment Company, also known as Eships, from Egon Oldendorff of Germany for US$90 million. Under the terms of the deal, Tristar will acquire a fleet of seven oceangoing tankers, which includes two LPG carriers under long-term time charter to an oil major, and five chemical tankers. Tristar says these vessels will be phased into its existing fleet and then fixed out long term in line with company policy.

“This acquisition is a perfect fit for our longer-term plans to diversify revenue and make shipowning an integral part of our strategy to build a fully integrated

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Shipowners & operators

liquid logistics business,” says Eugene Mayne, group chief executive of Tristar.

In May this year Tristar also took delivery of the first two, out of a total of six, 50,000 dwt clean petroleum product tankers on order from Korean shipyard Hyundai Mipo Dockyard. These are being built at a cost of US$200 million. The acquisition of Eships and the newbuilding programme, combined with Tristar’s existing coastal fleet, will bring the group’s owned shipping fleet to more than 20 vessels. As a result, Tristar is poised to become one of the leading players in the UAE shipping business, as well as a significant logistics services provider, based on the group’s interests in surface transport, specialised warehousing and fuel services.

Financial restructuring Another Dubai-based venture, Gulf Navigation, has been through some tough times of late, and has had to restructure its finances; but it now believes the worst is behind it and opportunities for expansion and growth exist. The Gulf Navigation board has recently appointed former Drydocks World chairman HE Khamis Juma Buamim as managing director and group chief executive, and has outlined plans to grow its fleet of product and chemical tankers and reinforce its shipping services business.

In addition to the proposed acquisition of new tonnage, Gulf Navigation will execute a number of new projects and activities to boost turnover and profit growth over the next five years. This includes developing offshore support services within the Arabian Gulf and Gulf of Oman, purchasing work boats for offshore projects, and building a global shipmanagement network under the Gulf Stolt Ship Management (GSSM) umbrella. Gulf Navigation has recently acquired 100% of GSSM, which was previously a 50/50 joint venture with Stolt Nielsen. This will be used as a vehicle to develop an in-house shipmanagement arm and ensure that assets are managed and maintained to the highest industry standards.

TMS UAE Yearbook 2016/17

Gulf Navigation has, furthermore, this year set up a Technical Services and Workshop division. This will offer shiprepair, maintenance and technical services out of new facilities in Khor Fakkan.

Gulf Navigation currently owns and operates a fleet of eight chemical tankers and four crew boats. The company started operations in 2003 and remains the first and only publicly listed maritime and shipping company in the UAE. The company is headquartered in Dubai, UAE, with a branch office in the Kingdom of Saudi Arabia.

Other leading tanker owners based in the UAE include ADNATCO-NGSCO and Gulf Energy Maritime (GEM). A subsidiary of ADNOC, ADNATCO-NGSCO has a total fleet of 27 ships, including eight LNG tankers, six cruise oil/product tankers, and seven bulk carriers. In addition, the company has two chemical tankers, a molten sulphur carrier, an LNG carrier and two container feederships.

Formed in 2004, GEM manages a modern fleet of double-hull tankers designed to carry petroleum products, chemicals and other hydrocarbons. The current fleet of 19 ships comprises eight LR1, two LR2 and nine chemical/product tankers.

Tristar has acquired the Eships fleet of vessels

The Gulf Navigation board has recently appointed HE Khamis Juma Buamim as managing director and group chief executive

31

Shipyards

Shipyards build up a reputation for quality The UAE is home to some of the busiest shiprepair and newbuilding yards in the Middle East, and these facilities are steadily raising their profile not just locally but on an international stage as well

D The efficient completion of work on Beynouna reflects the focused attention and excellent project team support – Laksmi Janarthanan, Drydocks World The NDC rig Beynouna leaving the yard in 2015

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ubai’s Drydocks World is the biggest yard within the UAE, spread over 200 hectares, with four large drydocks and over 3,700 m of berth space. While its primary focus is on shiprepair and conversion, the company has successfully diversified into shipbuilding and offshore fabricationrelated work as well in recent years. Furthermore, with over 145 rig projects completed, it is also highly experienced in rig repair, maintenance and refurbishment.

During 2015, Drydocks World achieved an increase in the number of ships serviced in its Dubai yard, completing work on a total of 277 vessels. The majority of these vessels were tankers, including ULCCs and VLCCs, while bulk carriers, containerships and general cargo vessels were also docked.

One of the biggest projects completed by the yard, however, was offshore-related with the construction of the world’s largest turret mooring system for SBM Offshore, Technip and Shell. Drydocks World has to date delivered five modules for the Shell FLNG turret mooring system and the fact that over 5 million lost time incident (LTI) free man hours were completed on the latest turret project is a testament to the excellent safety record that the organisation maintains. According to Laksmi Janarthanan, commercial director: “This project confirms that we are a leader in turret fabrication, and strengthens the company’s position as one of the few worldwide specialists capable of delivering such large-scale projects.”

Drydocks World is also working on the fabrication,

commissioning and load-out of the Borwin 3 HVDC converter platform for Petrofac, TenneT and Siemens. The Borwin 3 link will transmit approximately 900 MW of wind power to mainland Germany.

Drydocks World has, furthermore, been awarded a contract from Kvaerner to carry out the fabrication of components on the Johan Sverdrup Riser Platform Jacket for Statoil, which will be located in the Norwegian sector of the North Sea. Drydocks World is carrying out the fabrication of pile clusters and floatation tanks according to stringent NORSOK safety and quality standards. The entire structure will weigh over 7000 tonnes when completed.

Growth area Rig-related work has been a growth area for the yard in recent years and another notable milestone was reached when the company completed its first Rig Integrity Assurance Program (RIAP) on the rig Diyina for the National Drilling Company (NDC). Drydocks World has now completed a total of 17 projects for NDC. For another of the company’s rigs, Beynouna, Drydocks World’s rig services team turned around a major repair ahead of schedule in 28 days. Mr Janarthanan states: “The efficient completion of work on Beynouna reflects the focused attention and excellent project team support allocated towards this vessel in order to reach the milestone date agreed with NDC.” The Drydocks World Dubai workforce on average completes over 300 projects of varying types a year, and in 2015 set a record of handling 42 refurbishment projects simultaneously. The company has also built a number of vessels for various owners, and is currently working on an innovative LNG-fuelled tug, together with Wartsila, that is expected to be deployed within the Drydocks.

As well as the main yard, a subsidiary, called Drydocks World Marine Services provides docking, repair and conversion services for vessels up to 130 m in length inside Dubai Maritime City (DMC). Equipment available at DMC includes two synchrolifts of 6,000 tonnes and 3,000 tonnes capacity, along with 42 dry berths and approximately 2 km of wet berths.

In early 2016, Drydocks World Dubai and Abu Dhabi Ship Building (ADSB) entered into an agreement to work together on maritime projects, with the aim of better optimising the resources of the two leading shipyards in the United Arab Emirates. The memorandum of understanding between the two companies is expected to pave the way for the creation of a stronger industrial entity,

TMS UAE Yearbook 2016/17

Shipyards

Drydocks World Dubai was very busy last year, at one point handling a record of more than 40 vessels at a time

eight landing craft and high-speed protection vessels.

These will feature state-of-the-art equipment, technology and advanced protection capabilities to ensure they are able to carry out required tasks efficiently and accurately.

One of the newest yards in the UAE is Damen Shipyard Sharjah (DSS). Established in January 2014, the company recently celebrated its second anniversary.

Within the space of those two years, the yard has established a position for itself as one of the region’s leading builders of tugs and one of the busiest Middle East repair yards for small and medium-sized vessels.

Tug deliveries

better able to handle large-scale maritime projects in the UAE and across the GCC region. Precise details of the cooperation have not been revealed, but the agreement is expected to facilitate the transfer of knowledge and capabilities between the two firms, to mutual benefit, and to establish the basis for longer term future cooperation between the two state-controlled enterprises.

ADSB is 40% owned by Abu Dhabi’s strategic investment company Mubadala and 10% by the government of Abu Dhabi, with the remaining 50% publicly traded on the Abu Dhabi stock exchange. It achieved net income of Dh96.2 million for the first nine months of last year compared with a Dh53 million loss in the same period of 2014, largely as a result of growth in its naval ship building business. Dr Khaled Al Mazrouei, chief executive officer of ADSB, says the agreement will open new horizons for establishing cooperation between the two companies, and will support the national economy in terms of developing the maritime services sector.

Abu Dhabi Ship Building (ADSB) is now working on a significant new contract from the Kuwait Ministry of Defence, signed in January this year, to build and supply

TMS UAE Yearbook 2016/17

DSS celebrated its second anniversary in January this year with 13 ships in dock for repairs and a number of new vessels under construction

It was the first time we have delivered a tug that was made in Sharjah for a Sharjah customer – Willem Moelker, Damen Shipyard Sharjah

One of the yard’s main areas of business is the delivery of Damen-designed tugs, with eight vessels of this type completed in 2015 and more on order for 2016-17 completion. A particularly notable recent delivery was the 68.5 tonnes bollard pull ASD 2411 Al Luolo Aya, which was delivered to Sharjah Port Authority for deployment at Khor Fakkan port. Willem Moelker, head of sales and marketing, Damen Shipyard Sharjah, says: “This was an important landmark as it was the first time we have delivered a tug that was made in Sharjah for a Sharjah customer.”

The total DSS newbuilding orderbook is now 18 vessels, with deliveries stretching into 2017. As well as allsteel tugs, the yard is also building a number of aluminium fast crewboats to Damen’s proven SeaAxe design.

Newbuilding work makes up around 40% of the business at DSS, with the balance comprising repair and conversion work. During 2015, a total of 165 vessels were docked at the yard for repairs and upgrades, the majority of which were tugs and OSVs. DSS, a joint venture between Damen Shipyards Group and Albwardy Marine Engineering, is located in the Sharjah Hamriyah Free Zone in the United Arab Emirates (UAE). Occupying a 284,000 sq m site, the yard has 1,200 m of quay wall, with draughts between 5 m and 9 m alongside, and is equipped with a 5,200-tonne shiplift, eight dry berths, a fully enclosed blasting and

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Shipyards

painting facility, 4,500 sq m of newbuild construction sheds and 7,500 sq m of workshops for the various trades active on the site.

Based in DMC, Grandweld is another yard with a strong shipbuilding and repair business. Last year the company consolidated its position as a leading builder of vessels for the oshore segment, completing the construction of a total of 17 vessels over the course of 2015. Projects included advanced crew boats, dive maintenance and support vessels, and work crane boats.

Grandweld, which has been operating from its Dubai base since 1984, specialises in vessels custom-built to conduct complex operations in the region’s challenging oshore environment. These range from three recently delivered work crane boats for Kuwait Oil Company, optimised for duties such as heavy lifting, oil-pollution control, SPM hose handling and taking supplies to remote areas, to two modified 4 m long crew boats, FNSA-3 and FNSA-4, for Fujairah National Shipping Agency. The latter vessels are capable of speeds in excess of 30 knots and have been customised to execute operations such as security duties, fast transportation of oshore personal and cargo, and the rapid supply of fuel and freshwater. “The Middle East is a unique environment, with unique challenges and opportunities,â€? states Jamal Abki, general manager Grandweld Shipyards.

Other noteworthy deliveries in recent months include

three 34.3 m aluminium crew boats to Jana Marine Services, a 50 m Dive Maintenance & Support Vessel to Abu Dhabi National Oil Company (ADNOC), and the 42 m crew boats Stanford Volga and Stanford Niger, which are capable of carrying 83 people at speeds of 25 knots. “It is an exciting time for the business and our customers,â€? concludes Mr Abki. “As the oshore market moves towards more optimised, complex vessels, our knowledge and experience allow us to respond with advanced newbuildings that deliver added performance and competitiveness for our clients.â€?

The Grandweld shipyard is located within Dubai Maritime City

WET, DRY & CHEMICAL BROKERAGE

SPECIAL PROJECTS

MARINE & ENERGY FINANCIAL SOLUTIONS

OPERATIONAL SUPPORT

RESEARCH & CONSULTANCY

FREIGHT FORWARD AGREEMENTS

SALE & PURCHASE

FREIGHT FORWARD AGREEMENTS

New York Singapore Athens Caracas Dubai Houston Lima Mexico City Mumbai New Delhi Rio de Janeiro

TMS UAE Yearbook 2016/17

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Class

Merger puts DNV GL in a class of its own Befitting its position as one of the world’s leading maritime centres, most of the world’s leading classification societies have a strong presence in the UAE, including market leading DNV GL

This is one of the strongest growth regions in the world right now for DNV GL – Ralph Becker, DNV GL

T

he amalgamation of Det Norske Veritas (DNV) and Germanischer Lloyd (GL) has created a classification society with enhanced capabilities across the Middle East. The merged DNV GL organisation has 10 offices in the Middle East region, staffed by around 500 people, around half of whom are based in the UAE. These cover a wide range of maritime, and oil and gasrelated activities, as well as business assurance functions.

Merger success Ralph Becker, manager for business development in the Middle East for DNV GL’s maritime division, says: “The merger has gone very well locally and over the past year or so business in the Middle East has grown significantly, both in terms of gross tonnage and the

number of ships under class. This is one of the strongest growth regions in the world right now for DNV GL and good results have been achieved.”

Notable successes for DNV GL include its involvement in various newbuilding projects, supporting owners in enhancing vessel performance through optimising hull forms using state-of-the-art CFD technology. Recent newbuilding wins include a series of nine anchor handling tug supply (AHTS) ships for ESNAAD, as well as two subsea vessels and a large series of module carriers for Topaz.

Prospects for future newbuilding opportunities are rated highly. ”We are in negotiations with Middle East interests regarding a number of projects. We hope these will come to fruition in the near future,” says Mr Becker.

New services One of the reasons for the growth in business is DNV GL’s drive to become a highly customer-centric classification society. This is reflected in a number of new services, including Direct Access to Technical Expertise (DATE), which is now available to clients in the Middle East and Indian Subcontinent. This allows DNV GL to respond quickly to technical questions by using technical expertise centres located around the world, allowing owners to get swift answers to any classrelated issues on a 24/7 basis. Mr Becker also draws attention to the new MyDNVGL portal, which allows owners to access in-depth information about their entire fleet, prepare surveys and order services online.

The merger of DNV and GL has additionally created

Agreement helps Tasneef achieve strategic objectives Tasneef chief executive, Rashed al Hebsi

Established in 2012 as the UAE’s own classification society, Tasneef aims to become a market leader across the GCC region

A

s part of its strategy to increase local market share, Tasneef, the first certified Arab classification society, has entered into an agreement with Abu Dhabi Ship Building (ADSB) to develop naval construction and related services in the UAE. The memorandum of understanding (MoU), signed in May 2016, includes classification and technical consultation services as well as the issuing of classification certificates for systems, employees, products and naval fleet safety.

Collaboration between the two companies

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TMS UAE Yearbook 2016/17

Class

Ralph Becker, manager for business development in the Middle East for DNV GL’s maritime division

will also be evident in technical areas to increase safety, security, environmental practices and naval policy development.

Rashed Al Hebsi, chief executive officer, Tasneef, says: “Signing this memorandum is in line with the Tasneef’s strategy to strengthen collaboration with different official authorities, specifically those that are specialised in the naval industry. This contributes to the UAE’s role as an international and regional hub for navigation and naval services and infrastructure development.”

New standards Within a relatively short period of time, Tasneef has successfully implemented new standards of quality control with regards to building vessels and making them operational, fulfilling the needs of the Arab world and its unique temperatures. One of its primary achievements is the so-called Sahara Standard for ship specifications that operate in hot climates, saving 15% of operating and fabrication costs when

TMS UAE Yearbook 2016/17

opportunities to launch new service capabilities locally to meet specific owner needs. As an example, DNV GL introduced a new Jack-up Service Centre in the Middle East in 2015, based in Dubai. “We can now handle plan approval for jack-up rigs locally and provide owners with highly sophisticated technical advisory services,” Mr Becker points out. “This has been huge success and we now have eight staff engaged in this section and plan to expand further.”

The DNV GL Maritime Advisory business has also been in high demand in the last two years and has grown significantly. With the addition of experts for hull and machinery issues, a full range of services can be provided locally. Dubai is now the base for one of the four Condition Assessment Programme and Life Extension centres worldwide in the DNV GL organisation, demonstrating the importance of this kind of business in the region.

“We are now of a size where we can have a greater amount of expertise stationed locally,” says Mr Becker.

“This makes a big difference in the support for our local client base. We are getting very positive feedback about this.”

A key element of the merged company’s strategy is to become a ‘data smart’ company. Mr Becker says: “We believe in digitalisation and connectivity, and for example see cyber security as a big topic that could require class involvement in the future. We are harnessing new technology, for example using drones for survey work, and prepare ourselves as well as our clients for future requirements.”

compared with ships built and operated in oceans and areas with colder climates.

Moreover, Tasneef is the accredited body for the GCC Code, which is the result of intensive cooperation between the National Transport Authority (NTA) and Tasneef, and was implemented from 1 September 2014.

Designed to raise safety standards for the local maritime industry, the GCC Code is being used by Tasneef as the basis for surveying up to 1,600 ships operating in UAE waters.

Tasneef has also developed the UAE Yacht Code, the first of its kind in the world, specialising in “super yachts” that are longer than 24 m. The code, launched in 2015, enables the UAE government to register these types of yachts under the country’s flag and issue a special registration certificate.

Mr Al Hebsi, adds: “The UAE Yacht Code puts Tasneef among the leading classification agencies in the world in terms of legislation and laws governing large-size private yachts. This contributes to bridging the gap in global legislation in this regard.”

Tasneef is committed to developing the

local skills base and 50% of its employees are UAE nationals. The classification society has taken the initiative through various training and educational programmes and has within the past year celebrated qualification of the first Emirati class surveyor according to IACS standards. In addition, the Tasneef Academy, the academic arm of the classification society, was launched in late 2015 and has developed a number of specialised maritime training courses, in various vocational areas, targeting the maritime sector.

Potential Capt Waleed Al Nahdi, director of Tasneef Academy, says: “This region needs a large number of experts and professionals in strategic areas, including navigation and marine services, as well as quality management. This academy will enable us to help exploit the economic potential of the Arab region based on its strategic geographical location and its natural resources.”

37

Offshore

Offshore business continues to thrive The UAE is home to a number of companies specialising in offshore services and, despite difficult market conditions, most report positive business trends Right: Stanford Marine’s crewboat Stanford Volga, which was handed over by UAE shipyard Grandweld in 2015

38

O

ne of the strategic aims of the UAE authorities is to make the country a hub for offshore shipping and related activities. There are a number of companies based in Dubai and Abu Dhabi that are focusing on this segment and most have expansion plans.

One of these is Seaborne International, which is recognised as one of the leading maritime and offshore service providers and system integrators in the region focused on offshore shipping. Services provided by the company include marine and offshore engineering consultancy, project management, planning and scheduling, onboard inspection, yard selection and contract negotiation. Seaborne International also offers

afloat repairs throughout Europe, the Middle East and Indian Subcontinent.

Originally set up in 2006, in France, as a representative of a handful of European manufacturers, Seaborne subsequently expanded overseas, with its Dubai-based subsidiary being established in 2013. “We are a relatively young company in the UAE, but we have a lot of accumulated experience,“ says Snehansu Mahapatra, head of Gulf and India. “Our aim at Seaborne

TMS UAE Yearbook 2016/17

Offshore

The PSV ESNAAD 221, delivered in 2015

International is to provide a one-stop-shop for marine and offshore requirements and to ensure our customers’ technical and commercial requirements are met.”

Mr Mahapatra believes that Seaborne is offering a new concept to the region, one that focuses more on integrating different technologies to optimum effect, than on price. He adds: “We can help shipowners make the right decisions by looking beyond just price. As a result of this approach, we currently have projects in a number of yards in the Middle East and India, both providing technology and supporting the design process.”

Seaborne aims to bring something different to the market. “I don’t think we can be compared with anyone else operating in the UAE at the moment,” says Mr Mahapatra. ”We can offer shipowners benefits by coordinating different technologies and concepts, integrating them in a smooth and streamlined way to the benefit of end users and yards.”

Currently Seaborne International has a staff of around 14 people in Dubai, and plans to expand further over the next few years. It is also contemplating setting up a further office in India to support its activities in this fastgrowing market.

Topaz Energy and Marine, one of the region’s leading offshore support vessel operators with a strong presence in the UAE, has recently further expanded its fleet with the acquisition of a 60 tonnes bollard pull anchor handling tug supply vessel, Mamlaka. The delivery takes the total number of vessels in its fleet to 100, including three newbuilds currently under construction.

Mamlaka is a 61.8 m long, DP2 class vessel built by

TMS UAE Yearbook 2016/17

Malaysian shipbuilder Berjaya Dockyard. The vessel was acquired as part of a contract with an oil major in a key Gulf market and is currently in Dubai being prepared for deployment. Also over the first quarter of 2016, the company took delivery of the Topaz Resolve, a multipurpose support vessel.

Fleet expansion René Kofod-Olsen, chief executive officer, Topaz Energy and Marine, says: “Over the last 12 months we have expanded our fleet to take advantage of market conditions, focusing on acquisitions that are in line with our strategy of operating a modern and high-spec fleet, the benefits of which will strengthen us as our clients place increasing emphasis on safety, operational uptime and efficiency. The quality and youth of our fleet positions Topaz favourably against the higher average age of the worldwide OSV fleet.”

Headquartered in Dubai with 40 years of experience in the Middle East, Topaz operates a fleet that has an average age of seven years. The company is a subsidiary of Renaissance Services, a publicly traded company on the Muscat Securities Market, Oman.

Mr Kofod-Olsen adds: “As expected, the first quarter of 2016 has proved challenging. While the oil price has stabilised over the last few months, the market remains very competitive. Our ability to secure long-term contracts with reputable clients demonstrates our commitment and belief in the long-term fundamentals of our industry.” So far in 2016, Topaz has secured two landmark contracts, signing long-term deals with BP for

We can help shipowners make the right decisions by looking beyond just price – Snehansu Mahapatra, Seaborne International 39

VROOAM has a passion for the shipping industry: The open waters are our laboratory for developing technically superior heavy duty marine lubricants. Thanks to our partners in shipping we can truly understand the need of developing high quality marine lubricants that can extend oil intervals and reduce operation costs.

We understand the marine industry, as we are from the Netherlands: Product performance, durability and cost efficiency is in our DNA.

Offshore

14 vessels in Azerbaijan, and a US$350 million contract with TCO in Kazakhstan to construct, supply and operate 15 vessels for a minimum of three years.

Another offshore vessel operator based in Dubai is Stanford Marine. Established in 1997, the company operates an extensive fleet of around 40 vessels, serving the oil and gas industry in the Middle East, South East Asia, Africa, India and the Gulf of Mexico. As well as its headquarters in Dubai, Stanford Marine also has offices in Singapore, Doha (Qatar), Abu Dhabi and support desks in Saudi Arabia and Nigeria.

Darren Reeves, general manager, says: “Over the last few years, Stanford Marine has cemented its reputation of being a major player in our home territory of the Middle East in the provision of marine vessels supporting the oil and gas industry. We are fortunate enough to count the region’s major oil companies as our clients. In addition to our core business in the Middle East, our horizons continue to broaden with vessels now operating successfully in Mexico, Angola, Malaysia and Thailand.”

Additions to the fleet in the past year have included two new crew boats built by sister company Grandweld.

Stanford Volga and Stanford Niger were delivered in August and September 2015 respectively. The two 42 m crew boats have a speed of 25 knots and seating capacity of 83 persons. Both vessels are committed to projects in Abu Dhabi.

One of the biggest offshore vessel operators in the region is ESNAAD, a subsidiary of the ADNOC group. The company currently operates a fleet of around 50 vessels out of its base in Musaffah, Abu Dhabi. ESNAAD has an ongoing investment policy aimed at replacing older vessels and increasing the overall size of the fleet to around 70 vessels in the near future.

GMS’ latest new vessel, GMS Sharqi, was delivered in early 2016

Fleet categories

Nine-vessel order The company has in the past year placed a big contract with China’s Sinopacific Shipbuilding Group to build nine anchor handling tug supply (AHTS) vessels. Due for delivery in 2017, the AHTS will have an electric propulsion system and a bollard pull of 80 tonnes. The basic design of these vessels has been tailored to ESNAAD’s specific requirements, including the ability to operate in shallow water, high-salinity, hightemperatures and high-humidity in the Gulf.

ESNAAD also has an order for 10 platform support vessels (PSVS) with Dutch shipyard De Hoop. These are due to be delivered between 2015 and 2017, with the first in the series, ESNAAD 22, entering service last July.

Also based in Abu Dhabi is Gulf Marine Services (GMS), which has become the leading provider of advanced self-propelled, self-elevating support vessels (SESVs) in the world. Its fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the UK. GMS’ current newbuild programme to increase its fleet size by 66% to 15 vessels is almost complete, with the final vessel scheduled for delivery at the end of 2016.

The group’s SESV fleet, which currently comprises 14

TMS UAE Yearbook 2016/17

vessels, is technically advanced and amongst the youngest in the industry, with an average age of seven years. The SESVs are four-legged vessels and are selfpropelled, which means they do not require tugs or similar support vessels for moves between locations in the field; this makes them significantly more costeffective and time-efficient than conventional offshore support vessels without self-propulsion. They have a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the group’s clients.

Over the last 12 months we have expanded our fleet to take advantage of market conditions – René Kofod-Olsen, Topaz Energy and Marine

The fleet is categorised by size into Large Class vessels, operating in a water depth of up to 80 m, with crane capacity of up to 400 tonnes and accommodation for up to 300 people, and Small Class vessels, operating in water depth of up to 45 m, with crane capacity of up to 45 tonnes and accommodation for up to 300 people. A new third class, the Mid-Size Class, capable of operating in water depth up to 55 m, with crane capacity of up to 150 tonnes and accommodation for up to 300 people, was added to the fleet in 2015.

The latest new SESV, GMS Sharqi, was delivered at the end of the first quarter of 2016. The Large Class vessel GMS Evolution remains on schedule for delivery in the last quarter of 2016, completing the newbuild programme. There are no plans for further new ships at the moment.

Fleet utilisation so far in 2016 has been around 93%.

Duncan Anderson, chief executive at GMS, says: “The sustained low oil price continues to affect our industry and our focus remains on maximising vessel utilisation and maintaining our strong client relationships in the MENA region and Europe, while managing our costs appropriately. Our clients are seeking to lower their overall costs and we are confident we have the right business model in place to meet their needs, helping them carry out their operations as efficiently as possible using our young and flexible fleet of sophisticated SESVs.”

41

Law

Legal eagles soar high Proposed updates to the Maritime Law are being welcomed by legal experts as likely to make it more attractive for shipping firms to do business in the UAE

M

aritime law has become an increasingly important, and active part, of the cluster of shipping related businesses in the UAE. In Dubai, in particular, a number of specialist law firms have expanded their presence significantly over the past few years, while the government itself is taking steps to strengthen the legal framework as part of its over-arching maritime strategy.

One law firm, Baker & Mckenzie Habib Al Mulla, has been instructed by the UAE government, through the Federal Transport Authority (FTA), to review, amend and update the current UAE Federal Law No. 26 of 1981 relating to maritime activity – better known as the Maritime Law. The firm is working with the FTA, other relevant government authorities, industry experts and academics specialising in maritime law, as well as consulting with all parties in the UAE maritime industry.

Standards

The aim is to bring the Maritime Law... in line with global standards and consolidate Dubai’s position as a regional and international maritime hub – Tarek Saad, Baker & McKenzie Habib Al Mulla

Tarek Saad, counsel at Baker & McKenzie Habib Al Mulla, says: “The aim is to bring the Maritime Law and its associated regulations in line with global standards and consolidate Dubai’s position as a regional and international maritime hub. Our UAE team is working closely with Baker & McKenzie’s maritime experts across the world, including teams in Singapore, the UK, Germany and Australia, on this project.”

TMS UAE Yearbook 2016/17

Work is well under way on this review of the Maritime Law. It is hoped that preliminary recommendations will be published in the second half of 2016, before consultations take place with the wider shipping sector in the UAE. The initiative has been warmly welcomed by other local maritime law firms. Rania Tadros, managing partner of Ince & Co, says: “As a big-picture exercise this is a very positive step forward and should help clarify a number of matters. However, a law is only as good as it is applied, and so there is a need to step up training for judges as well.”

Initiative

Another important initiative by governmental authorities is the recent launch of the Emirates Maritime Arbitration Centre (EMAC), which has a mandate to review and settle maritime disputes quickly and efficiently. EMAC has been established at the direction of His Highness, Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, as a specialised arbitration centre to assist those operating in the maritime industry and to assure investors of an effective means of dispute resolution.

Both the EMAC and Dubai International Financial Centre (DIFC) courts now have judges with a maritime background, bringing industry insights into the settlement of disputes.

Tarek Saad welcomes this development. He suggests: “Together with the review of the Maritime Law, the setting up of EMAC will improve the industry’s performance and competitiveness and help make the UAE become one of the world’s leading maritime hubs.”

In an important milestone, board members have been appointed to EMAC, with well known arbitrator Sir Anthony Colman named as chairman and Majid Obaid bin Bashir as vice Justice Sir Anthony David Colman will chairman. The chair the new EMAC arbitration centre board also includes

43

Law

The Stephenson Harwood team

We have taken modern space in a strategic location to facilitate further expansion over the next few years – Rovine Chandrasekera, Stephenson Harwood Right: The courts at DIFC now have judges with a maritime background

44

a high level group of government, maritime, legal and business figures, including Ahmed Essa Al Falahi, Dr Ali Obaid Al Yabhouni, Dr Chi-Sang Kim, Mohammed Al Muallem, Capt Mohamed Juma Al Shamsi, Mohammed Saeed Al Kindi, Saadi Abdul Rahim Al Rais, Saeed Al Malek, Capt Jitendra Misra, Richard Briggs, Edward Newitt, Christopher Mills and Essam Bella.

Welcoming the start of the EMAC service, HE Sultan Bin Sulayem, chairman of the Dubai Ports, Customs and Free Zone Corporation and president of Dubai Maritime City Authority (DMCA), describes it as a development that is of “special importance” as an initiative for the settlement of disputes according to arbitration mechanisms and independent legal frameworks and regulatory controls.

He said: “EMAC is a key part of an overall strategy that aims to place the UAE at the forefront of the world’s maritime capitals by the year 2020.”

DMCA entrusted another local law firm, Al Tamimi & Company, with providing advice on setting up EMAC. The scope of work included liaising with the DMCA’s arbitration department to draft the law and regulations related to EMAC and submit the project, which involved a comprehensive study of all major international arbitration centres worldwide, for approval.

Ince & Co is one of the leading providers of maritime

law services with a base in Dubai and over the past year the company has taken steps to significantly enhance its capabilities. Pavlo Samothrakis, who specialises in the shipping, international trade and offshore energy sectors, has recently been promoted to partner. This follows the similar elevation of Mohamed El Hawawy and Khalid Hamed in October and May 2015, respectively. Both Mohamed and Khalid, like Pavlo, specialise in the shipping and offshore sectors.

Expanding team Ince & Co’s Dubai office, which celebrated its 10th anniversary this year, now has a team of 15 lawyers who specialise in shipping. The aim is to further boost this number to around 20 by the end of this year. Rania Tadros adds: “In recent times we have seen a shift from commercial work to litigation and arbitration, and we see opportunities to grow in these areas. We have a good and well balanced team with a broad spectrum of capabilities in the contentious and non-contentious side of shipping law.”

The company has been busy over the past year, handling a wide variety of shipping-related cases, including a number involving the collapse of OW Bunker for example, as well building close links with a number of local shipping companies. Rania Tadros says: “With the set-up of EMAC, we believe more work will be referred locally and we are preparing for that to happen by building up a very experienced and capable team in this region. Dubai is developing fast as a maritime law centre and this will open up more opportunities to expand and develop our capabilities.”

Baker & McKenzie’s UAE-based maritime team has also been expanded recently, with the addition of Amir Alkhaja and Abdalla Eisa as associates in 2015. Amir is an expert in maritime law, and specialises in transactional shipping advice and marine causalities as well as in

TMS UAE Yearbook 2016/17

Law

contentious maritime claims before the UAE courts.

Abdalla focuses on shipping and insurance, advising on both contentious and transactional shipping matters, and has experience in the Middle East handling civil, commercial and criminal cases.

A number of cases the company has been involved in over the last 12 months have set legal precedents in the UAE. For example, the company represented a leading UAE trading company in relation to a US$10 million claim in a dispute over a joint venture agreement entered into with a major international conglomerate, to trade in oil.

“Our firm set a precedent in the UAE by successfully obtaining a provisional attachment order to the 3,000 tons of oil cargo on board the tanker owned by the conglomerate to cover the debt. This is the first ever case in the UAE where cargo has been attached in a situation where the owner of the vessel has no relationship with the parties,“ says Mr Saad.

In another case, Baker McKenzie secured a groundbreaking result for a carrier client in respect of a claim for damages due to fire on a voyage. The UAE Federal Supreme Court and the Dubai Court of Cassation established that the outbreak of fire during a voyage constituted a legal presumption in the carrier’s favour, exempting it from any liability for destruction or damage of the cargo. This ruling was upheld by the Abu Dhabi Court of Cassation.

Global capabilities “Our global capabilities, combined with our track record in the maritime industry, longstanding regulatory expertise, and insights into the challenges facing the UAE maritime industry, all contributed to our instruction in these notable matters,” says Mr Saad.

Another company with a strong position in the maritime law sector, Stephenson Harwood, has recently moved to new and much bigger offices in the DIFC, in line with its five-year plan. Rovine Chandrasekera, managing partner, says: “We are now three years into our original plan, having got up and running in Dubai in 2013. We have taken modern space in a strategic location to facilitate further expansion over the next few years.”

Stephenson Harwood is different to many other

In recent times we have seen a shift from commercial work to litigation and arbitration, and we see opportunities to grow in these areas – Rania Tadros, Ince & Co maritime law firms in Dubai in that it is not purely shipping focused. “Shipping is the core, but we have corporate, financial, construction and other areas of expertise as well. We are not one dimensional, and that is a key strength in my view,” adds Mr Chandrasekera.

Shipping accounts for over half of the business at present, but the company can offer a full range of services to clients. “Our strength is our diversity,” Mr Chandrasekera says. “We have seen growth across all areas of our business in Dubai and we will continue with that strategy. Shipping will always be the heart of the Stephenson Harwood practice in Dubai, but the rest of its organs will be strong as well. It makes for a more healthy business model.”

The company’s clients include many leading shipowners, shipyards, major ship finance banks and oil and gas companies.

Stephenson Harwood has recently acted for a major UAE oil terminal in relation to a US$125 million multi-jurisdictional dispute concerning the title to two cargoes of oil. Its team has also advised UAE owners on the purchase of four newbuild gas carriers from a leading Korean yard and advised UASC on a loan facility used to part finance its ongoing newbuilding programme comprising 12 containerships.

While it has its Middle East base in Dubai, Stephenson Harwood is also building up a wider presence across the region. The company has, for example, specialists active in Iran, Oman, Iraq and Qatar, providing clients with a wide range of services and legal advice in these countries.

Datta leads Globe Express expansion

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upply chain solutions provider Globe Express Services (GES) is benefiting from having Poonam Datta as its new chief commercial officer. Poonam, who joined the company in July last year, boasts more than 25 years in the shipping and logistics business, including a lengthy spell with Maersk, where she became one of the group’s youngest managing directors.

Poonam says: “GES had an excellent year in 2015, achieving double-digit growth. This

TMS UAE Yearbook 2016/17

largely reflects the investments that have been made in technology, providing end-toend transparency of the supply chain, and giving access to e-commerce opportunities.

The growth potential in the UAE, which is highly stable in geopolitical terms, is great, and I am excited about the prospects for GES looking forward.”

The company recently received the Maersk Line Platinum award for the fifth consecutive year, she points out.

Rania Tadros, managing partner at Ince & Co

During 2016, GES has been focusing on niche strengths, including reefers, dangerous cargo, cargo consolidation and express/air cargo services. The company is also looking to expand its geographical horizon. “Iran will be a game changer,” says Datta. “We are already looking closely at this market.”

GES has three offices in the UAE, including a 100,000 sq m facility at Jebel Ali. The company also has an extensive fleet of its own trucks, and provides a range of 3PL and 4PL logistics services across the UAE market, as well as in Saudi Arabia and Kuwait.

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Companies

Al Mufaddal consolidates

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ne of the many engineering support services that back up the shipping industry in the UAE, Al Muffadal offers repair and maintenance services for boilers, heat exchangers, economisers, condensers coolers and automation systems, as well as steel fabrication.

Huzaifa Shabbir, managing director, says: “Our main objective is to consolidate our position in the industry and hopefully, with continued professional and timeefficient services, we will reach the number one spot as far as boiler services in the UAE are concerned in the next few years.”

From its headquarters in the UAE, Al Muffadal has plans to develop chemical cleaning services, complementing its existing business, and start manufacturing pressure vessels. Already Al Muffadal is fully accredited with various ASME certificates.

The company has also set up a facility

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China Cosco raises profile with new alliance

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Huzaifa Shabbir, managing director, Al Muffadal group

in Bahrain, where it aims to develop a manufacturing base. Last year it signed a boiler repair agreement with ASRY and has recently invested in a 21,000 sq ft office, store and workshop area to support companies calling into the yard.

he newly merged China Cosco group is set to become a major player in the UAE trades. In April this year Cosco Container Lines, CMA CGM, Evergreen and OOCL jointly signed a Memorandum of Understanding to form the so-called Ocean Alliance.

The new alliance will collaborate closely to offer services on more than 40 routes, including the Far EastMiddle East Gulf trades, where it is expected to have significant market share, calling into both Khorfakkan and Jebel Ali in the UAE. Subject to regulatory approval, the new alliance is due to start operations in April 2017, with an initial combined fleet of over 350 ships. It will be the industry leader in terms of service frequency and coverage.

The total fleet of China COSCO Shipping now stands at 1,114 vessels with a capacity of 85.32 million dwt, making it the largest shipping company in the world. Its container fleet capacity is 1.58 million teu, ranking it fourth globally, while the company also has a fleet of 365 bulk carriers, 120 tankers and 3 million dwt of general cargo and specialised vessels.

TMS UAE Yearbook 2016/17

Law

Fichte & Co expands capabilities This is the 11th year of the company’s existence in Dubai and the maritime law firm has recently been expanding in a number of different directions

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n the second half of 2015, maritime law specialist Fichte & Co upgraded its corporate department with the appointment of Franco Grilli. In addition, its local litigation team is now being supported by Teresa Starr, a senior barrister who handles matters in the DIFC Court, after being appointed last year.

During the first half of 2016, with the lifting of Iranian sanctions, Fichte & Co established an Iran desk in its Dubai office and added Atousa Mahmoudpour to the team. A Canadian lawyer with Iranian roots, and with solid working experience in Tehran, she can offer far more than just legal support and is already assisting clients with various steps in doing business, and setting up ventures, in Iran.

Furthermore, in March 2016, Fichte finally Jasamin Fichte, managing established an office in Abu Dhabi. Managing partner, Fichte & Co partner Jasamin Fichte says: “This was long

TMS UAE Yearbook 2016/17

overdue as we have many long-term clients in Abu Dhabi and the office will enable us to serve our clients here better. Our partner Ziad Touma is running the office in Abu Dhabi and it has been a great benefit for our clients to have him on board.”

Fichte plans to further expand its Abu Dhabi office and build an international network with other likeminded law firms over the coming months. Ms Fichte says: “Clients often ask for an international law firm or expect us to have an office in London, Singapore or Greece, but what they do not understand is that our way of working is far more efficient. We have strong networks with law firms in all the major maritime hubs and choose our partner depending on the legal matter in hand, and of course on the fee quoted. This way we can work more cost effectively, and often more efficiently, than with an international set-up.”

We have strong networks with law firms in all the major maritime hubs – Jasamin Fichte , Fichte & Co

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Maritime industries

Steady growth for Islamic P&I Club Having a UAE base has proved invaluable for the club as it seeks to further expand the insurance services it provides Right: Amir Mosadeghi, chief executive, Islamic P&I Club

We are the only P&I club based in an Islamic country and we appreciate the encouragement the authorities in Dubai have given us – Amir Mosadeghi, Islamic P&I Club

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he Islamic P&I Club has continued to develop the scale and scope of its operations over the past few years. Established in 2001, in its early days the club’s focus was on smaller vessels, including the offshore sector, but gradually it has extended its coverage to include larger ships up to 25,000 grt, as well.

In the past few years, the club has started to manage its own marine insurance syndicate, focused on the needs of carriers based in Islamic states. The club has also introduced a reinsurance capability.

Amir Mosadeghi, chief executive, says: “Last year, 2015, was a positive one for us, although of course we were affected to some extent by the slowdown in the shipping business, which has impacted on the insurance market as well. We saw a small rate of growth last year and we have a similar expectation for 2016, with most of our members staying with us. Looking forward, there are some positive signs, with the Iranian market likely to become more active, for example.”

The Islamic P&I Club has a significant share of the UAE shipowners’ market, as well as in other GCC countries. The scope of the club’s operation also extends to owners in South East Asia.

Long-term strategy Mr Mosadeghi says: “We have a long-term strategy and we are here to stay. We know there are more experienced P&I providers in the market, so we try to compete by offering a high level of customer service and by providing insurance facilities more quickly.”

The UAE has been home to the club since it started.

Mr Mosadeghi suggests: “Being based in Dubai is a big advantage and we are grateful for the support we have received, and are still receiving, from the UAE government. We are the only P&I club based in an Islamic country and we appreciate the encouragement the authorities in Dubai have given us.”

As well as its head office team in Dubai, Islamic P&I has a network of 480 correspondents worldwide. It also has offices in Jakarta, Indonesia, and has plans to establish a presence in Istanbul, Turkey, as well as

TMS UAE Yearbook 2016/17

Malaysia, in the foreseeable future.

Mr Mosadeghi says: “It is perhaps not the norm for P&I clubs to have lots of offices in different countries, but that is what our clients want. One of the benefits of having a P&I club presence locally is that it helps improve standards generally in that market.”

Islamic P&I Club is a mutual and non-profit organisation, and is principally involved in the business of insurance and reinsurance liability cover, including protection & indemnity (P&I), freight demurrage & defence (FD&D), hull & machinery, charterers’ liability, loss of hire and war risk. Operating under the umbrella of the Organisation of the Islamic Conference, Islamic P&I Club provides full P&I and FD&D cover up to a US$500 million limit of liability.

As with other P&I clubs, Islamic P&I is an association of shipowners and charterers, who as the members control the club. Each member has a voice in the formation of policies at the annual general meeting, and elects the directors, who are responsible for formulating the underwriting policy, financial planning and the extension of covers.

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Maritime industries

Capt Harihar Prasad, managing director at McQuilling

McQuilling expands Dubai-based team The Middle East and India represent important growth markets for the global ship broker

F We are currently the only shipbroker in Dubai with a specialisation in the large tanker market – Capt Harihar Prasad, McQuilling 50

ounded in 1972, McQuilling Partners has been involved in the global ship brokerage business for over four decades. The company has particularly focused on the tanker segment and is employed by a number of leading national and global oil companies, as well as refiners worldwide.

McQuilling Brokerage has been active in the Middle East and Indian Subcontinent for a number of years.

However, the company has successfully increased its presence and formalised its involvement in this important region recently, setting up a Dubai subsidiary in 2012 and incorporating offices in India in 2014.

Dubai-based McQuilling Shipping Services DMCC offers a comprehensive range of tanker and dry bulk brokerage services to clients across the Middle East and the Indian Subcontinent, covering the crude oil, clean petroleum products, chemicals, dry bulk, offshore and sale and purchase sectors. Research and consultancy, including maritime logistics and finance, are also part of the portfolio.

Commitment McQuilling has demonstrated its commitment to the local market by steadily increasing the size of the Dubai team and securing significant new business across the region. From an initial staff of three shipping experts, the office now boasts a diversified group of 20 professionals.

Capt Harihar Prasad, managing director, says: “We are currently the only shipbroker in Dubai with a specialisation in the large tanker market. Additionally, we have a meaningful presence in the chemical and product

tanker sectors, as well as a long history of sale and purchase transactions and project work. We also provide both market and bespoke research and consultancy for our clients.”

Post-fixture operations and operational advice is a source of pride for the McQuilling team. “We set the bar high in terms of operations,” says Capt Prasad. “A key strength is the fact we have three master mariners in our office, which we believe gives us a competitive strength.”

New offices In response to the rapid growth of the Indian shipping market and the consequent need for a full service brokerage firm, McQuilling set up offices in India in 2014.

The staff in Mumbai and Delhi comprise crude, product and gas brokers. “Our clients can expect the same professional and reliable services from our team in India that they have come to expect from all McQuilling offices worldwide,” Capt Prasad says. “All of our offices work from a seamless electronic platform and proprietary database system.”

The United Arab Emirates is increasingly being viewed as a strategic shipping hub with time zone advantages that allow contact with all key shipping markets throughout the day. Capt Prasad adds: “Our Dubai office is an integral part of the dynamic McQuilling global network. We envision that future group expansion of that network and its various services will include this office.”

McQuilling Partners is a privately owned marine services company and is present on both the International and Asian Baltic Exchange tanker panels. In addition to its regional presence in Dubai, Mumbai and Delhi, the group is headquartered in New York with offices in Singapore, Athens, Caracas, Houston, Lima Mexico City and Rio de Janeiro.

TMS UAE Yearbook 2016/17

Maritime industries

Ship recycling demand is at a low ebb at present, but DTA believes the market will bounce back over the next few years

DTA maintains leading position One of the leading players in the ship recycling market, Dubai Trading Agency (DTA) believes the market will improve over the next few years after considerable volatility in recent times

D Tahir Lakhani, DTA chairman, says that his company has been able to maintain its market-leading position despite increased competition

TA has been in business since 1973, and was the first company based in the Middle East to start buying and selling ships for recycling. As chairman Tahir Lakhani points out: “Over the past few years others have come into this business, but we have been able to maintain our market-leading position.”

Over the years, DTA has expanded globally and grown to include several subsidiaries and associate businesses, having offices in New York, the UK, Singapore, Pakistan and India. Primarily, the focus of the group has been on buying vessels targeted for recycling from shipowners worldwide and selling them to the breaking yards in the Subcontinent, Turkey and China. It is one of the largest cash buyers in the market, having purchased over 1,800 vessels to date.

During 2015 and the first half of 2016, there has been a relatively low level of activity on the global ship recycling market. Mr Lakhani explains: “Metals are being bought on the regular market as prices have come down. Customers

can get the materials they want more cheaply than buying recycled scrap metal from vessels.” Consequently scrap prices have fallen and shipowners are holding back from recycling older tonnage until prices recover.

However, despite this downturn, Mr Lakhani believes market prospects are still good. ”A significant number of ships have to be scrapped over the next two to three years due to their age,” he claims. “Supply will come back up, although the market is very volatile. In almost 40 years in this business, I have not seen the market fluctuate as much as it has done in the past year or so.”

Diversifying DTA is still primarily focused on ship recycling, although it has diversified into other areas, including ship agency and crew boat supply operations. Its subsidiary DTA Shipping Agency has offices in Jebel Ali and Fujairah, and currently operates three crew boats. “This business is doing very well and the plan is to get up to five more crew boats in the foreseeable future,” says Mr Lakhani.

DTA did for a time own several deepsea cargoships and traded them on its own account. But the company has in recent years withdrawn from this activity. However, Mr Lakhani says: “I would not rule out buying ships for our own account again. We are just waiting for the right time to acquire suitable dry cargo ships.”

A significant number of ships have to be scrapped over the next two –Tahir Lakhani, DTA to three years due to their age TMS UAE Yearbook 2016/17

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Maritime industries

Clarksons Platou set for sustained period of growth Clarksons Platou Dubai has grown steadily over the past decade and the UAE office of the world’s leading integrated shipping services group could see staff numbers doubling over the next two to three years

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stablished in 2005, Clarksons Platou Dubai has grown to become the fourth largest office in the Clarksons Platou global network and now employs 65 staff. As result, the company is firmly established as the largest broker in the Middle East and India.

Essam Bella, managing director, observes: “The growth we have seen over the past 10 years largely reflects the emergence of Dubai as one of the main global maritime centres. The maritime sector in the UAE is growing nicely; the government has a plan, knows what it is doing and what its goals are, and that is important.”

Clarksons Platou Dubai will soon be moving to new offices in Jumeirah Lake Towers, with double the space of its current premises. “We need room to grow,” says Mr Bella. ”We plan to expand the team and also add to the range of services we offer. Taking on the new offices will increase our ability to support local clients with consultancy and advice, as well as practical shipbroking experience.”

The Clarksons Platou Dubai office focuses on

shipbroking activity and has around 25 brokers specialising in dry bulk operations, with a similar number in tankers and specialised products broking. In all sectors Clarksons Platou arranges spot work, contracts of affreightment (COAs) and time charters with the region’s leading shipping companies, as well as several smaller players.

The Dubai-based team is supported by an office in Delhi, where there are three dry bulk brokers, and branch offices in Cairo and Alexandria. There are plans to expand, and set up more offices in the region, offering not just shipbroking but also agency services.

Fastest growing

Essam Bella, managing director of Clarksons Platou Dubai

Mr Bella says: ”We are far and away the largest shipbroker in the Middle East, covering a market from Egypt and Sudan to India. We are also the fastest growing subsidiary of the Clarksons Platou group in terms of transactions, people and profitability. Our strength is our full service capability, drawing on the Clarksons Platou global network.”

He draws attention to the range of added-value services it can offer clients, complementing its core ship brokerage skills. “We have, for example, our own in-house legal division,” he points out. “So if the need arises we can offer clients internal advice. We also have access to Clarksons Research Services’ Shipping Intelligence Network database, which is a powerful tool for our clients.” Following the acquisition of RS Platou, Clarksons is now able to offer a full offshore broking service, as well as investment banking and financial services, through the Dubai office.

Nasco Middle East holds its own Nasco Middle East has been active in the region’s insurance market since 1976, building up a strong position in both the marine hull and cargo insurance sectors Nasco Middle East enjoyed a generally satisfactory year in 2015. As Bimal Bhatia, director, international affairs, reflects: “Some areas of our business, such as medical, experienced fast growth, while the shipping business saw relatively limited expansion. That said, as far as shipping insurance is concerned, we held our own in what is now a very competitive market.”

The company offers hull and machinery insurance for a wide range of vessel types, as well as shiprepairers’ liability insurance, which covers the risks involved in the repair and modification of vessels. The company, however, specialises in certain types of high risk cover, for instance relating to kidnapping and ransom, piracy and war risks.

Mr Bhatia says: “For hull and machinery

52

Bimal Bhatia, director, international affairs, at Nasco Middle East

insurance, we are working with a number of leading shipping companies to meet their needs in this area. We have built up a particularly strong position in the local yacht

insurance market, a trend that has been helped by the fast pace of growth of the Dubai Marina and the fleet based there.”

Nasco prides itself on offering a highly personalised service, and this has helped the company develop its shipping client base in the region, where such relationships are much valued. Mr Bhatia points out: ”The strength of our company is also our teamwork. We have a wonderful shipping team based in Dubai with good technical know-how that allows them to focus on the quality of risk. We are looking to work with owners who are technically sound and who have the right priorities in place, and our team is highly skilled in being selective in the relationships we develop.”

As well as hull and machinery, Nasco Middle East is active within the cargo insurance sector. Mr Bhatia points out: “We offer tailor-made marine insurance to cater for the particular nature of the merchandise being transported. So special covers are available for bulk grains and frozen food, as well as oil, gas and chemical products, for example.”

TMS UAE Yearbook 2016/17