KHALEEJ TIMES / ADVERTISING SUPPLEMENT SUNDAY, JULY 29, 2012
HEMPEL PAINTS
Protection that lasts
Exploring fresh
maritime opportunities Dubai Maritime City provides innumerable prospects for business and trade
Staff Report
D
ubai Maritime City (DMC), the worldclass maritime cluster built to further maritime activity in the Middle East, saw an increase in business and commercial activity in 2012. The City’s Industrial Precinct has tailor-made solutions for maritime industrial, commercial and trading companies and offers facilities such as large and small workshops, warehouses, ship repair plots, shops and canteens. Over 55 local and international organisations involved in the maritime sector and hospitality services have set up base here. “We have changed the concept of business and development plans for the city to re-engineer a model of an active futuristic city. There has been large-scale interest in the Dubai Maritime City, because of its proximity to the trading and commercial hub
within Dubai. The City is ideally located at an exceedingly busy trading route and provides innumerable opportunities for business and trade. The region has survived the economic shocks that are rattling countries elsewhere and is widely known for its resilience and ability to overcome adversities due to strong business and economic fundamentals. This is the primary reason that there has been an ever-growing list of local and international companies lining up to set up base at the City. We have had a growing number of ship owners who are faithfully utilising the state-of-the-art infrastructure and facilities that are on offer,” said Khamis Juma Buamim, Chairman of Drydocks World and Maritime World. Among the workshops, warehouses and plots available on lease, 85 per cent of phase 1 and 2 have already been occupied over the first half of last year de-
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With its wide range of painting solutions, Hempel offers long-term protection to its clients’ investments, thus forging a lifelong bond with them HEMPEL was founded in 1915. Approaching 100 years of age, it has grown to become one of the world’s largest, independent suppliers of decorative, marine, yacht, container and protective coatings reaching every continent in the Globe. Hempel is in one of the market leading positions in the Middle East, with a substantial network of manufacturing units and sales offices providing products and services to almost every sub sector. Hempel Paints was involved in many challenging projects all through the Middle East, always successfully coping with hectic schedules and supply demands. Products applications Hempel’s protective coatings range is used in many applications including oil refineries, pipe lines, power generation and chemical industry plants as large scale projects in increasingly difficult conditions make the knowledge of corrosion mechanisms and their prevention more and more important in order to make these projects economically viable. Hempel always strives to give its customers long-term protection for their investments through tailored solutions to meet every climate and environmental condition
backed with the highest levels of service and support. Best-in-class technical services Hempel invests in long-term relationships with its customers through providing them with the maximum level of service to suit their projects requirements. Hempel works with many of the industry leaders where Hempel customers have access to a worldwide network of coating advisors and engineers who have been independently certified to one or more of the following standards: • FROSIO – Norwegian Professional Council for Education of Inspectors • NACE – National Association of Corrosion Engineers • B/GAS – British Gas Approved Inspectors programme The fully staffed and certified
technical services department provides customers with professional and internationally accredited technical services. Prior to commencement of works Hempel qualified coating advisors shall visit the site and provide practical hands on advice on all coating related preparations, allowing work to be undertaken in a suitable and professional environment. This will generally include advice on the suitability of equipment, access issues and of course pre preparation/application condition surveys on the actual substrate/structure to be coated. Hempel’s Marine coatings protect all types of vessels – from the smallest yachts to the largest tankers. Proximity to customers is guaranteed through more than 200 stock points around the globe that provide customers with consistently high-quality coatings and services.
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SUNDAY, JULY 29, 2012 KHALEEJ TIMES / ADVERTISING SUPPLEMENT
MARINE & OFFSHORE
Exploring fresh maritime opportunities » CONTINUED FROM PREVIOUS PAGE
Your Partner in Offshore Services
!"#$%&'()*+',)-'.)%#/' 0123#%456'7%8'97:#56; Operating 40 vessels and having one of the youngest multipurpose fleet to serve you better.
For further information please contact STANFORD MARINE LLC P.O. Box 32456 Dubai, UAE Tel: +971 4 380 8001 Fax: +971 4 380 8015 charter@stanford-marine.com
DUBAI
STANFORD MARINE ASIA PTE LTD Singapore 609927 Tel: +65 6506 6100 Fax: +65 6506 6101 singapore@stanford-marine.com
ABU DHABI QATAR KSA SINGAPORE www.stanford-marine.com
spite adverse global market conditions. There are over 18 potential local and international clients who have expressed a keen interest in the varied properties and this number is growing rapidly in keeping with infrastructure and technical services development at DMC. Nearly 75 per cent of the investors are expected to begin construction by 2013. An academic facility and a healthcare facility are being negotiated with international investors. The Industrial Precinct, which has ship-lifts of capacity 3,000 and 6,000 tonnes respectively, saw 214 ship lift operations until the end of May 2012 and 380 berthing activities. The year also saw several high value repairs such as L81, L82, PB1, Farica, Tug Tanajib, Dulcinea, My Dubawi, Delfina and Abqaiq for major repeat clients such as the UAE Navy, Van Oord, Saudi Aramco and Pacific Basin. Jadaf Dubai, the sister facility catering to small and mid-size vessel owners also saw brisk activity and recorded a total of 638 operations. Government agencies such as Dubai Electricity and Water Authority (DEWA) and the Roads and Transport Authority (RTA) are fully supportive and are actively involved in the development of services around the city. Allotment of premises has been authorised by the Real Estate Regulatory Agency (RERA), the body that regulates and authorises the real estate sector in Dubai. An agreement between DU telecom Services and DMC for service provision within the City is under review and is expected to be implemented shortly.
MTWARA
We can safely say we go the extra mile, or however many are needed. Topaz Marine’s award-winning service can be credited to an unwavering focus on safety, with zero ‘lost-time incidents’ in 2009 and 2010. In addition, our modern fleet of close to a 100 vessels is, on average, 7.12 years old, which enables us to remain a cost-effective solution to our clients. Contact us: Tel: +971 4 883 2929 Email: topaz.marine@topazmarine.com Web: www.topazworld.com
TOPAZ ENERGY AND MARINE
Combining experience and expertise The energy and marine major provides services and products through three divisions and employs over 4,500 people TOPAZ Energy and Marine is a leading oilfield services company providing marine and engineering solutions to the global energy industry. Headquartered in Dubai and with more than 35 years of experience in the Middle East, Topaz operates a fleet of 98 offshore support vessels. Topaz is a whollyowned subsidiary of Renaissance Services SAOG, a publicly traded
company on the Muscat Securities Market, Oman. The energy and marine major provides services and products through three divisions: Topaz Marine, Topaz Oil and Gas, and Topaz Marine Engineering, which together employ over 4,500 people. The group has a strong market position in both the Caspian and MENA region and a growing presence in West Africa, Europe, Gulf of Mexico and Brazil, along with other key oil and gas exploration, development and production regions. Topaz Marine offers offshore marine services to blue chip clients in the offshore oil and gas industry through a modern and diverse fleet of vessels. Topaz Marine supports major offshore projects with services such as anchor-handling, cable lay, subsea support, platform
supply, emergency recovery and response etc. Topaz Oil and Gas provides four key services to the oil and gas market — EPC projects, fabrication, maintenance and rig repair. The business is located in the UAE with facilities in both Abu Dhabi and Fujairah, specialising in complex fabrication of topsides modules and exotic pipework, onshore and offshore brownfield projects and the rapid turnaround required for rig upgrades. Topaz Marine Engineering offers ship building, ship repair underwater support and vessel life cycle support services through a globally connected network of agents and brokers. The companies have specialised in high quality on-time delivery of all their products and services.
VALENTINE MARITIME
Charting new waters The company is on an expansion spree: It is constructing a square fabrication yard and a marine base to offer onestop shop to its clients ESTABLISHED in 1990 with its head office at Abu Dhabi, Valentine Maritime has grown over the years to become one of the leading offshore EPC contractors in the region, specialising in offshore pipelaying of concrete-coated steel pipelines up to 60” in diameter, SPM terminal installations, offshore hookups and offshore platform/deck/jacket installations. Under the leadership of its president, Najjad Zeenni, who has been working in the offshore oil and gas industry for over 40 years, the company continues to expand into other activities such as heavylifts and fabrication. Presently, Valentine Maritime carries out projects within the GCC, East and West coasts of India, East coast of Africa and the Mediterranean Sea and Black Sea and continues to expand into other regions as the company grows. The year 2012 is important for the company according to Wael Zeenni, Business Development Manager of Valentine Maritime. “Two important events will catapult the company into its next
stage of growth,” explains Wael. “A new DLB pipelay barge with a 1,600-tonne revolving crane onboard, capable of accommodating 300 men onboard, is due to be delivered within the next two months. This vessel will enable us to not only lay bigger pipelines in deeper waters, but to also engage in the heavy-lift market. This vessel will complement our fabrication activities since the jackets and decks that we manufacture will require bigger cranes for their installation.” The other exciting development will be the completion of a new fabrication yard to support its current operations. Construction work on the new 185,000 metre square fabrication yard and marine base is currently underway and expected to be completed and operational by the end of 2013. “What this means is that we will be able to provide our clients one stop shop for their needs — not only for installation of offshore
structures, but fabrication as well — giving us full control over the cost, timing and execution of such projects,” says Wael. Presently, Valentine Maritime owns and operates its own fleet of three derrick pipelay barges, tugboats, cargo barges and accommodation barges. The company has staff strength of 700 people, at present, which is expected to more than double in the coming years to support its ambitious expansion plans. Valentine Maritime is one of the few privately held organisations in the oil and gas field, but this has not stopped them from competing with big players in the past. They have not only successfully bid and won large contracts in competition with some of the biggest names in the industry, but have also executed the projects successfully and to the exact specifications of the client, all the while adhering to the most stringent requirements of health, safety and the environment.
STANFORD MARINE
Fleeting sucess The company is ISO certified and pays special heed to health and safety issues STANFORD MARINE, part of the Stanford Marine Group, owns a diversified fleet of about 40 offshore vessels and operates in the Middle East, South East Asia, Africa and the Gulf of Mexico. Stanford Marine has achieved a leading position in its industry through hard work and continuous focus on client satisfaction, operations effectiveness and health and safety. The company is committed to exceed its clients’ expectations by constantly learning, improving and offering the best. Stanford Marine has been in business for over two decades and has an attractive growth profile. It runs its operations from its headquarters in Dubai and offices in
Singapore, Doha, Abu Dhabi, Mtwara (Tanzania) and Dammam (KSA). The fleet comprises DP and NON DP platform supply vessels, anchor handling tugs (AHT), anchor handling tug supply (AHTS), supply vessels, fast crew boats, utility vessels, and crew boats. Having a multi-purpose fleet allows us to be the preferred onestop shop for a wide range of cli-
ents, from production to offshore construction and geotechnical contractors. Stanford Marine is an ISO 9001, ISO14001 and OHSAS certified company. The company’s focus on health and safety is the driving force behind its success. It posted zero per cent LTI (lost time incidents) in 2011 for the second year running and passed five million man-hours without LTI.
MARINE & OFFSHORE
KHALEEJ TIMES / ADVERTISING SUPPLEMENT SUNDAY, JULY 29, 2012
BAHRAIN
Steps to improve efficiency Bahrain is updating its legal framework and is reviewing the new Maritime Code
B
ahrain’s geographically strategic position and access to some of the world’s most prominent shipping lines have helped it develop its burgeoning marine and offshore industry — a sector that has been dominated by European players for centuries. Over the years, the island nation has gained significant prominence in ship repair business, evident enough from the thick order book of some of the regional companies. The country has effectively tapped opportunities in the offshore repair market. The sector has proven to be lucrative for companies like ASRY (Arab Shipbuilding and Repair Yard), Hempel and others. The companies boast of its vessel repair ex-
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ASRY
Lighthouse in the dark night In tough times for the shipping sector, Bahrain based Arab Ship Building and Repair Yard Company is the silver lining on the cloud AS THE global shipbuilding sector continues to reel under difficult economic situations, there is light at the end of the tunnel. Regional names like the ASRY (Arab Ship Building and Repair Yard Company), a leading name in shipbuilding and vessel repair services, continue to hold out hope. “The ship repair market will remain very competitive due to increased capacity in the region and we expect the ship owners to continue to operate on low maintenance budgets due to the weak shipping market,” Christopher F. Potter, Chief Executive of ASRY, told Khaleej Times. At ASRY the change is palpable. Much of the older fleet has been phased out so the fleet is newer, which means the work scope is reduced with less repairs during the dry-docking. This also translates into lowering the revenue per repair. These days most owners drydock their ships at 60 months intervals for the first 10 years and thereafter at 30 months intervals. The upcoming IMO legislations regarding water ballast treatment systems and fuel emission requirements are likely to force owners to invest and install new equipment on board the ships. Christopher opines that the investment cost for these modifications is substantial. The installations onboard the ships will require modifications to be done and a majority of this job will have to be carried out during the repairs. This will add revenue for the repair yards, he added for good measure. Needless to say ASRY is expected to stay ahead of competition, the main differentiator being its 35 years of experience. Curiously no other yard in the region has the depth of experience. Due to this, ASRY has a good reputation in the market and is known for good quality, efficiency and delivery on time. “We have established long term relations with key customers and more than 80 per cent of the ship repair is repeat business,” the confident CEO quipped. The most positive sign for ASRY is the maintenance of its market share despite the increased competition from regional yards. As new yards are opening, ASRY’s business is not decreasing, which shows strong customer loyalty
Christopher F. Potter and very positive signs looking ahead. With a worldwide agency network covering the potential markets, ASRY has done several changes lately by appointing a new agent for the BeNeLux market besides changing its agents in Germany. Since the shipping industry is most prone to being affected by global market fluctuations, ASRY is also taking a short-to-mediumterm approach that creates specific priorities, but is overall far more flexible and agile than in previous years. However, longterm targets still remain a priority in some of the firm’s diversifications, such as ASRY Offshore Services. Alternately ASRY is keen on refocusing its business development targets in markets that are staying buoyant through the downward market pressures, such as Germany, France, the Scandinavian countries, the BRICS countries, US and UK. Adds Christopher, “The current business is dominated by the Arab market and customer retention is paramount, therefore the regional market will continue to operate best practice customer service.” In reality diversification has been at the core of ASRY’s success over the recent years. There are currently three main diversifications that are instrumental in ASRY’s operation. The first is ASRY Offshore Services, which was created through a strategic initiative to bring the yard’s reputed global standards to the rig repair segment, but has now spearheaded the broadening of ASRY’s once ship-specific operation into a wider maritime industry repair complex, accounting for 40 per cent of overall sales and 50 per cent of profit in 2011. The second diversification is ASRY Energy Division, which was a move into unchartered industrial territory that took place in 2011 and added a new proficiency to the yard: Floating Power Plant production. The power barges that are the foundation of the Floating Power Plants are going to be waterborne power generating units, deployable in a multitude of otherwise unreachable areas, at minimal expense. They
We have established long term relations with key customers and more than 80 per cent of the ship repair is repeat business Christopher F. Potter
employ a self-contained, modular electricity generating system designed to be situated within port, river or sheltered coastal locations and remain in operation for at least two years. The final diversification is ASRY Consultancy Services, a dedicated division of a team of engineers, naval architects and senior yard managers, providing engineering, design and consultancy services on a global basis. “Having just completed a $188 million expansion, the majority of our investment will be to ensure that the new facilities we have created — namely a 1.34km quay wall, four new tugs, offshore loadout area, and yard-wide infrastructure improvements — are used at an optimal level. With our berthing capacity now at its highest ever level, the focus moving forward is to ensure that capacity is filled,” the Arab Ship Building and Repair Yard Company boss emphatically states. While cost reduction may be the global catchword, ASRY is looking at ways of improving efficiency on a commercial and production level. All commercial activities in the company have been restructured and strengthened to include marketing activities in order to create a more integrated sales operation. The introduction of new IT solutions for enhanced overview of the targeted market and meeting face-to-face customers worldwide may just be the panacea the sector requires.
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SUNDAY, JULY 29, 2012 KHALEEJ TIMES / ADVERTISING SUPPLEMENT
MARINE & OFFSHORE
NPCC led venture wins $800m project NATIONAL Petroleum Construction Company (NPCC), an Abu Dhabi government-owned firm, joint venture will build new facilities at the man-made islands at Zadco’s Upper Zakum project. NPCC, a unit of the General Holding Corporation, offered bids in partnership with France’s Technip for engineering procurement and construction package one of the Upper Zakum 750 Production Build up Programmes by Zadco. The value of the contract is $800 million, according to sources, who hinted that the agreement is likely to be signed in three months. The Upper Zakum offshore field is located in the Arabian Gulf, 84 kilometres from Abu Dhabi. The scope of work for the awarded package includes construction of 240 kilometres of subsea pipelines, 128 kilometres of subsea composite and fibre optic cables and almost 30,000 tonnes of offshore/onshore struc-
tures. Other component of the construction project includes building of jackets, riser platforms, flare towers, bridges, modules and 37 initial production well facilities on artificial islands. Extensive brownfield modifications at the existing Zakum Central Complex and at seven Wellhead platforms will also be built. NPCC will lead the consortium and undertake the entire fabrication and offshore installation and modification works. Technip’s operating centre in Abu Dhabi will undertake the overall engineering for the project. The consortium will jointly manage the associated procurement, cable installation, onshore construction and commissioning, the company said in a statement. The project is due for completion in 36 months. In May, NPCC’s Chief Executive Officer Aqeel Abdullah Al Madhi said his construction company was bullish on Abu Dhabi’s
new projects and expects a surge in revenues to Dh5 billion this year up from Dh4.2 billion last year. “We’re expecting billions of dollars in value projects in the next 12 months in Abu Dhabi,” Al Madhi told reporters recently. EPC-2 of Upper Zakum, which has an even bigger value is likely to be awarded towards the end of the year, a source told Khaleej Times. The NPCC has set an ambitious expansion plan in terms of volume, growth, and geographical reach, scouting for opportunities in South East Asia, Caspian Sea and West Africa, its chief executive revealed recently. NPCC is upgrading its technical capabilities through an investment of $500 million. This covers upgrading offshore marine fleet, increasing yards’ capacity, augmenting equipment facilities and in addition to expanding its engineering capabilities.
Drydocks World sets up Asia joint venture DRYDOCKS WORLD, the shipbuilding arm of Dubai World, recently announced that it has entered into a global strategic alliance with Malaysia’s Kuok Group to form a joint venture between its Southeast operations and Pacific Carriers Limited, a highly recognised international name in the shipping industry. The new venture will subsequently be renamed DDW-PaxOcean Asia Pte Ltd and will continue to have its headquarters in Singapore. Khamis Juma Buamim, Chairman of Drydocks World and Maritime World, will also serve as the Chairman of the Board of DDW-PaxOcean Asia. Financial terms for the deal were not disclosed. The new group will be active in nine countries, own around 300 vessels and operate six shipyards. The agreement between the two companies is scheduled to be completed in the third quarter of this year. “We are committed to this partnership with Kuok and its subsidiaries, which has a long-standing
reputation in the shipping industry. Our clients can now benefit from the combined strengths of both our organisations and a broadened global reach within the maritime industry. It is indeed a historic agreement that is totally aligned with our strategic direction and the potential for future business growth is huge,” Buamim said in a statement. Drydocks World is one of the most prominent names in the maritime industry. It operates the
Middle East’s largest shipyard in Dubai, where it builds and repairs ships and oil drilling rigs. That yard is not included in the venture. “We are delighted to have Drydocks World as a joint venture partner,” said Pacific Carriers Chairman Teo Joo Kim. The two partners will also collaborate on cross-promotional activities and other strategic initiatives within the offshore and marine industry.
Steps to improve efficiency » CONTINUED FROM PREVIOUS PAGE pertise and years of experience in the sector. Take ASRY, one of the leading ship repair companies in the region, for instance. It has over 35 years of experience and offers services comparable to global standards. It was also the first company to get an ISO certification in the region and has serviced over 3,750 vessels. In depth knowledge and expertise in business give companies in this region an edge over the comparatively young yards that have emerged. Shipbuilding and repair companies in the country have more experienced yards, with skilled workforce, fair pricing structures and stringent quality control systems. Despite the economic crisis and a gradual slump in global trade, offshore and marine industry in Bahrain has shown resilience and has been registering growth in the last couple of years. ASRY has recently been awarded a contract to repair ships of Danish oil and shipping group AP Moller-Maersk. ASRY will repair Maersk’s vessels, operating in the Arabian Gulf, on preferential terms. Improvement in the container network in the region would therefore prop up growth as the majority of trade is in tankers and dry bulk. According to experts, the future of the transport sector and
Bahrain has two modern ports — Khalifa bin Salman Port and the Bahrain Logistics Zone. It is now planning to further develop and modernise its set up. To ensure that the marine industry flourishes, the Kingdom is updating the legal framework and is reviewing the new Bahrain Maritime Code related industries will depend on how world trade and the global economy recovers. The developments in the oil market and construction sectors will directly impact the movement of oil tankers and dry bulk vessels. The major mover in world trade is the shipping industry. Bahrain aims to become the maritime hub of the region and is, therefore, currently undergoing a transformation. As per the General Organisation of Sea Ports’ (GOP) Strategic Plan 2011-16, the kingdom will have to chalk out a roadmap based on six objectives to fulfil its marine aspirations. This includes a state-of-the-art marine repair and fabrication complex to reposition the country to the forefront of the global maritime industry. Bahrain has two modern ports — Khalifa bin Salman Port and the
Bahrain Logistics Zone. It is now planning to further develop and modernise its set up. To ensure that the marine industry flourishes, the Kingdom is updating the legal framework and is reviewing the new Bahrain Maritime Code. Once completed, Bahrain is expected to become a premier transshipment hub for the Northern Gulf markets. These initiatives serve to boost the maritime profile of the Kingdom and develop it in a cohesive way. The industry is also planning to chart newer territories such as naval repair and the new-build sector. There is a lot of scope for expansion in the Middle East for companies in this sector as a significant share of the global marine business is concentrated in this region. Commercial shipping market relies heavily on trade between the Middle East and the Far East.