Gulf region turning in to a major hub for ship repair services

There are several reasons for the growing interest of ship owners and management companies in GCC-based ship repair yards, the most important being the cost factor.

It is but obvious that ship owners will always seek the best deal possible when negotiating repair operations. As is well known, labour and steel parts are the most important components of any basic repair operation, and therefore hold the key to competitive pricing.

The GCC region enjoys a significant advantage in this regard largely due to easy availability of affordable & experienced labour from close traditional maritime markets of India, Bangladesh, Sri Lanka and the Phillipines.

The cost of repair in the Middle East is estimated at 100 to 105 compared to 250 in Japan, 140/150 in Europe, 110/115 in Turkey and Balkans. China and Indonesia though offers repairs on a scale of 50/65 and about 60/75 respectively in comparison.

Despite the low repair costs in Far-East based ship repair yards, what works towards the advantage of UAE and Bahrain is the large number of 'westbound traffic' out of the Gulf region. The region has been constantly witnessing a substantial increase in maritime trade and a large number of cargo ships, which traditionally sailed through to the Indian Sub-continent and beyond to South East Asia, are now choosing to turnaround at the Middle East ports instead, and rely on feeder vessels to carry cargo for the regional deliveries. What this essentially means is that demand for repair services for the large number of mother vessels and feeders plying in the region is on the rise.

It is but a fact that ships prefer drydocking on the routes on which they trade. Given the fact that drydocking is a highly expensive operational exercise, most shipowners prefer to drydock their vessels within the confines of the routes on which they operate. Deviation is avoided as it would further add to repair costs and operating expenses.

What is important to mention in this context is that the Dubai Drydocks and ASRY have been posing a stiff challenge to traditional ship repair yards in other parts of the world by providing quality services at competitive rates through productivity improvements, besides cheap labour.

The Middle East ship repair industry is no doubt expanding at a rapid pace. To cater to the growing demand for ship repair services in the region, a new dry-dock project has recently been planned in Oman. The Duqm ship repair yard will have a capacity to repair over 200 ships per year, including vessels as large as Ultra-Large Crude Carriers (ULCCs).

The expansion of the regional ship repair sector has resulted in a new development. It has led to a massive demand for new ship repair technology and related products. The sixth edition of the Gulf Maritime exhibition, which will be held at Expo Centre Sharjah from April 21-23, 2008, will feature the latest and the most advanced range of ship repair machinery, equipment, products and technologies.

The Gulf Maritime Exhibition is considered to be the region's most established and credible maritime platform that caters to the complete sourcing requirements of the commercial, government, leisure, as well as the military maritime sector.

This year's event, to be held under the patronage of Sharjah Crown Prince and Deputy Ruler His Highness Sheikh Sultan Bin Mohammed Bin Sultan Al Qassimi, will host more than 80 marine companies from over 19 countries. It will occupy a total exhibition area of 4,000 sq. m., besides an outdoor display area at the new marina behind the exhibition venue.

'The Gulf Maritime Exhibition has so far had five highly successful editions,' said Mr. Fasahat Ali Khan, Advisor to the Chairman and Board of Directors of Expo Centre Sharjah.

'Over the years, the Middle East maritime sector has come to perceive the event as a highly established and credible maritime platform that hosts major players engaged in manufacturing, distribution, and supply in the global maritime industry. With its unique and comprehensive exhibit profile, the Gulf Maritime Exhibition has been able to successfully make its mark in the region's as an exclusive maritime show that comprehensively caters to the needs of the entire maritime sector,' he added.

Displays at the 2008 edition of the Gulf Maritime exhibition will include the complete range of deck machinery and other vessel equipment, docking equipment, electronics, communication and navigation systems, engine and propulsion systems, fuel and lubricants, ride control systems, sound and vibration control systems, marine interiors, paints and coatings, latest vessel building designs and technology, equipment for fishing, offshore support vessels, cargo ships, tankers, tugs, ferries, and patrol boats, ship repair and port operations products, and cargo handling services.

'The Gulf Maritime Exhibition is an unique event,' said Mr. Saif Al Midfa, Director General of Expo Centre Sharjah.

'It is the only maritime exhibition in the region that features such an extensive exhibit profile and that too with a large number of global maritime majors as exhibitors under one roof. The exhibition also acts as a window for the regional maritime sector to the technological advancements taking place in the global maritime sphere. It is therefore not surprising that the Gulf Maritime Exhibition is largely known as an international maritime show with a Middle East perspective,' he added.

A major attraction at this year's Gulf Maritime Exhibition will be the launch or first time display in the region of several new categories and models of boats. Another highlight of the event will be the series of one hour each product presentations, seminars and conferences that will be held on the sidelines. Whereas the product presentations will witness the unveiling of several new products, technologies, and services, the seminars and conferences, to be addressed by leading experts from the global maritime industry, will introspect on several crucial issues concerning the regional maritime sector including new communication techniques in shipping, regional work boat requirements, new work boat building activity in the region, and new technology in ship repair among others.

Given the unique exhibit profile and the stature in the region, Gulf Maritime 2008 is bound to attract a wide category of visitors from across the Middle East maritime sector including ship owners and operators, ship and boat builders and repairers, ship chandlers, classification society and naval architects, suppliers/ manufacturers/repairers of engines and propulsion systems, marine engineers, suppliers of shipbuilding material, marine equipment and services, and electronic equipment, and government agencies.

The Gulf Maritime Exhibition is an initiative of Expo Centre Sharjah with the support of the Sharjah Chamber of Commerce and Industry.