Mid-East ship conversion demand to spur regional yard growth, Seatrade hears

Addressing the Seatrade Middle East Maritime (SMEM) conference at the Dubai World Trade Centre, Geoff Taylor, Chief Executive Officer, Dubai Drydocks said the number of well qualified yards in the Middle East has increased investor confidence for new shipyards and Floating Production, Supply and Offshore (FPSO) conversion facilities.

Taylor said existing regional shipyards have all the ingredients for effective FPSO conversion.

"With large graving docks, heavy availability, an efficient transport network and a full order book until 2010, 60% of the predicted 130 floating production systems will be FPSOs.

"The Middle East repairs 60% of the world's VLCC / ULCC fleet and is also a major hub for LNG repairs. Dredging work has brought a large proportion of the world's dredger fleet to this region," explained Taylor.

"Over 2,000 vessels are docked or repaired in the Middle East annually."

Major shipyards currently under construction and expansion are in Ras Laffan, Qatar; Sohar, Oman; Bandar Abbas in Iran; Arab Ship Repair Yard, Bahrain; Dubai Maritime City; and Dubai Drydocks. Offshore repair facilities are owned by Adyard, Lamprell, MIS, Global Process Systems, QGM Energy and Al Shabia Marine & Eng Co.

Referring to the growth Taylor said: "The Middle East offers excellent facilities for ship repair and conversion at competitive prices. Most yards are near the world's major oil loading terminals, so tanker owners face no deviation cost.

"The Gulf is now a well established maritime hub which can supply expert labour and specialised marine supplies throughout the region."

Earlier, the CEO of Abu Dhabi Terminals, Mohammed Al Mannaei, outlined how collaboration between DP World, the world's third largest port operator, and the Port of Abu Dhabi will transform the UAE port and container terminal industry.

"By 2010, Abu Dhabi Port will be transformed from a dedicated port serving the UAE capital to a genuine cargo hub contributing to an integrated nationwide port industry," said Mannaei.

"Since the partnership, Abu Dhabi Terminals has seen a 45% increase in productivity and a 20% tonnage growth."

Mannaei predicted far greater growth over the next few years and said the project symbolised the UAE leaders' commitment to developing integrated facilities and a shared vision of a dynamic national port industry.

SMEM 2006, which is the largest in the event's history, received its biggest ever attendance for its conference and trade exhibition with participation approaching 6,000 -up 30% on 2004. The exhibition, which featured 235 companies from 35 countries, drew visitors from 63 countries.

"Of particular significance is that 45% of the visitor profile came from outside the region, a key indicator that SMEM is now recognised as the industry's premier international meeting place," said Chris Hayman, Managing Director of Seatrade - the publishing and events house which organises SMEM.

SMEM, held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, returns 14-16 December 2008.