DP World A news roundup

Drydocks World and Petrofac complete Alpha and Beta topsides for TenneT’s Offshore Grid

Upon completion in 2023, Hollandse Kust Zuid can power millions of households with renewable energy

The Beta topside, the second of two High Voltage Alternating Current (HVAC) offshore transformer station topsides, successfully sailed away from Drydocks World Dubai’s fabrication yard to the Netherlands on 18 February 2022, following the Alpha topside in November 2021.

Together, the Alpha and Beta topsides will form part of the Hollandse Kust Zuid (HKZ) grid connection that will connect the offshore wind farm with the Dutch mainland, producing enough renewable electricity to cover the annual needs of over two million households when fully operational in 2023.

Drydocks World is committed to supporting its customers through the energy transition and beyond, with collaborative projects such as the HKZ grid connection exemplifying its involvement in the shift to a greener world, a press release stated.

The offshore wind farm will cover an area of 235.8sqkm and be made up of four 350 MW offshore wind farms, which will be connected to two 700 MW offshore substations: the already installed HKZ Alpha topside and the recently delivered HKZ Beta topside.

DP World Pavilion-Expo 2020

Capt. Rado Antolovic PhD, Drydocks World was recently joined by Elie Lahoud, Petrofac and Marco Kuijpers, TenneT at Expo 2020 in the DP World Pavilion, to celebrate the sail away of both topsides.

“At Drydocks World, we are committed to supporting our customers and industry with innovative low carbon and net zero solutions to energy production. As such, completing our part in the HKZ Alpha and Beta topside project is a major milestone for us,” affirmed Capt. Antolovic PhD, CEO, Drydocks World.

Significant Milestone

“We are proud and happy to have reached such a significant milestone on this important project, working with our partners to help our client TenneT and the Dutch government increase wind energy production capacity offshore of the Netherlands,” asserted Lahoud, COO, Engineering & Construction, Petrofac.

“With the completion of the Beta topside, the offshore grid that TenneT is building in the North Sea is starting to take shape. Hollandse Kust Zuid is the first connection of an offshore wind farm to the Maasvlakte,” noted Kuijpers, Director Large Project Offshore, TenneT.

The HKZ Alpha and Beta topside project is an end-to-end collaboration between Drydocks World, Petrofac and TenneT, committed to producing greener energy. Petrofac awarded the contract to Drydocks World to complete fabrication, commissioning and load out for two topsides, the press communique concluded.

Supply chain crisis compounds inflation in 2022

Chairman of DP World says supply chain bottlenecks will not clear until 2023

Recently published new research reveals that supply chain issues are exacerbating inflation.

The study by Economist Impact, sponsored by DP World, the leading provider of smart planning solutions, found that during 2022 trade is expected to expand further, with exports growing 16% in 2021, and imports by 12%. Production levels have been unable to keep pace with demand leading to supply shortages and will limit import growth in 2022.

“The report is evidence that rising freight rates, and low production levels, coupled with a volatile social-economic situation in Europe, will keep inflation high in 2022 as companies navigate a risky trading environment,” commented Sultan Ahmed bin Sulayem, DP World Chairman and CEO.

The survey of 3,000 respondents, captured perspectives of company leaders across the world. In addition to rising inflation, geopolitical tensions between the US and China continue to concern executives with 30% claiming that ongoing trade war between the US and China is the top reason to be pessimistic about global trade.

Takeaways

Highlights of the report are as follows: • Report indicates supply shortages will increase inflationary pressure in 2022 • Chairman of DP World says supply chain bottlenecks will not clear until 2023 • 29% of companies that export are concerned about the risk of rising inflation due to supply chain disruption • 30% of companies expect increasing transport costs to limit export-led growth in 2022, contributing to higher inflation • Just-in-time shipping is dying with over a quarter of companies now holding onto stock for three months

Despite the apprehension, and low production levels limiting imports, international revenue expanded for 68% of companies exporting freight in 2021, compared with 42% in 2020. 35% attributed that growth to an expansion of exports into new markets, as companies took advantage of new trade routes created by the pandemic.

To cope with the pandemic and ease inflationary pressures, companies are also changing their strategic outlook. 48% now said diversifying their supplier base is their primary reconfiguration strategy, with efforts focussed on sourcing raw materials (24%) and managing shipping lines and logistics (21%).

The highest cited reason for optimism for global trade was the growth of technology to ease supply chain issues, particularly the adoption of 5G to increase connectivity.

Streamlining operations

Digitalisation can also streamline operations and increase efficiencies in trade. 67% of companies in the industrial sector are already using digital platforms for supply chain management. Businesses now have greater flexibility to move cargo faster, track progress in real time and automate customs clearance processes, helping address non-tariff barriers.