Shipyard of the year
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1 LEADING SHIPYARD IN THE ARABIAN GULF SINCE 1977 Shipyard of the year Lloyds List names ASRY the best shipyard of the year at their Middle East and Indian Sub-continent Awards ceremony New Ship Repair GM joins management Paradigm Shift 2015 breaks record for number of ships docked, but revenues indicate new trend Landing Craft hull completed New construction on track
2 leave only your wake behind Chief Executive Message 2015 ends on a high note with our Shipyard of the year win, despite being a challenging year, especially in the Offshore sector with, the middle east s ballast water treatment retrofit experts 2015 ended on a high note for the yard with ASRY winning the Shipyard Of The Year award at the Lloyds List Middle East and Indian Subcontinent Awards. The independent judging panel selected ASRY because it has maintained its position as region s shipyard of choice despite growing competition and fluctuating market forces. However, the year in general did not meet our targets in terms of revenues, largely due to the Offshore market downturn, but despite the fact that we docked more ships than ever before in a single year. ASRY is experiencing a shift in its business model. In years gone by, ASRY s revenues came almost entirely from docking large vessel for big projects in our drydocks, one after the other. Today, we re a much more diversified hub, taking more numerous simultaneous smaller jobs alongside, and more varied jobs on the slipways. It s a faster, more segmented way of doing business, which we are still working towards perfecting. Amongst these shifting patterns, we still managed to break new ground. In the Navy segment, for example, with 2015 seeing new national Navies choose ASRY. Grey ships and associated projects now accounts for a significant percentage of the yard s overall revenue, and looks to continue as military maritime presence in the region increases. This is in line with our strategy to support the Navy s operating in the region and being their preferred partner for maintenance support and upgrades. As well as that we relaunched our New Construction programme with the signing of a newbuild contract to deliver a new Landing Craft to the Bahrain Coast Guard. By the end of the year, hull completion was in sight, and negotiations were underway for a second craft will mostly be remembered as the year that the Offshore sector took a downturn, affecting rig repair projects across the region. As a result, ASRY Offshore Services had a disappointing year. Despite the downturn, ASRY maintained its dominating position in the rig repair segment securing contracts from our repeat customers. Looking forward to 2016, there are several interesting developments on the horizon. We anticipate an increase in Ballast Water Treatment System (BWTS) installations as the new convention gets ever closer to ratification. Having already carried out major BWTS feasibility studies and having the engineering expertise and software as well as 3D scanning equipment in-house, we are well positioned to meet customers needs in that respect may also see some improvement in the Offshore market, should the oil price per barrel re-adjust to more intermediate levels as expected. Regardless, we intend to carry the momentum forward from being named Shipyard Of The Year, and meet the challenges of the year ahead with the ongoing dedication of all ASRY employees. the leading shipyard in the arabian gulf since 1977 Nils Kristian Berge CHIEF EXECUTIVE ASRY 2 3 bahrain ARAB SHIPBUILDING & REPAIR YARD
3 ASRY Named Shipyard Of the Year ASRY from the sky, high occupancy contributed to the yards victory Lloyds List has awarded ASRY the Shipyard of the Year Award at the Middle East and Indian Sub-Continent Awards in Dubai. ASRY has won the Shipyard Of the Year Award at the recent Lloyds List Middle East and Indian Subcontinent (MEIS) Awards 2015, one of the region s leading honours in the shipping industry. The award recognizes a shipyard in the Middle East or Indian Subcontinent region that has consistently met the needs of its customers in these times of tight capacity. The judging committee said ASRY had shown a commitment to, and demonstrated, growth in the continued challenges in the region, securing contracts from some of the region s leading shipowners. ASRY Chief Executive, Nils Kristian Berge commented regarding the victory, It s very gratifying to see organisations such as Lloyds List, which are highly regarded and independent bodies, recognising ASRY s tireless efforts to maintain our position as the region s preferred shipyard. This awards season, ASRY has received four nominations across multiple categories, and winning Shipyard of the Year is a strong endorsement of our strategy in It has been a very challenging year, but our response to those challenges to ensure maximum customer satisfaction has been effective. The panel of independent judges debated the winners in a private closed-door session to determine the overall winners. ASRY s winning entry outlined the yard s credentials, including the fact that the yard has maintained its position as region s shipyard of choice, as evidenced by its highest ever number of annual dockings of 193 in 2014 despite market depression, combined with excellent safety record and customer satisfaction scores. The gala event took place in Dubai at the Armani Hotel with leaders from the regional maritime industry attending. This recent accolade is ASRY s third victory in the Shipyard of the Year award category, which it also won in 2013 and ASRY s portfolio of awards also includes Safety Awards, and Corporate Social Responsibility Awards. Ship Repair General Manager Magdy Sharkawy receiving the award at the Dubai ceremony It s very gratifying to see organisations such as Lloyds List, which are highly regarded and independent bodies, recognising ASRY s tireless efforts Nils Kristian Berge, ASRY Chief Executive Winner Shipyard of the Year Arab Shipbuild ing & Repair Yard Sponsored by Chairman of 4 Craig Eason Judging Panel 5
4 ASRY Completes Landing Craft Hull With the hull completed, the next milestone wil be water-launch in Q2 Bahrain Coast Guard Landing Craft construction reaches new milestone of hull completion and erection on schedule ASRY has completed the construction and erection of the hull of a new Landing Craft being constructed for the Bahrain Coast Guard (BCG). This latest checkpoint confirms the project is still progressing on track after steel fabrication began in September 2015, and erection in October Working closely with the Bahrain Coast Guard, the vessel is taking shape very satisfactorily, confirmed ASRY New Construction & Engineering Senior Manager, Sauvir Sarkar, who is overseeing the project. We are now working towards the water-launch of the vessel, which we hope will occur in April The next phase The next phase of construction will be piping, followed by maching outfitting, superstructure construction, and then water-launch Sauvir Sarker, ASRY New Construction & Engineering Senior Manager Erection taking place on the slipway (below and right) of construction, now that erection is complete, will be piping, followed by machining outfitting, superstructure construction, and then waterlaunch. The Landing craft, expected to be delivered by the end of the first half of 2016, marks ASRY s first newbuild contract since launching the New Construction & Engineering division, which is tasked with growing the new construction programme at the yard. It will be approximately 34.5m in overall length, with two 500 Kilo watt engines, having a top speed of 10 knots and cargo deck capacity of 40 tonnes. ASRY already has experience in the new construction sector having built Offshore support vessels, ASD tugs and power barges. Bahrain Coast Guard officials receive a tour of the hull from ASRY Management The new system will be installed on more Odfjell ships 6 7
5 Notable projects of 2015 PARADIGM SHIFT: More projects, more diversity RIMTHAN II The yard repaired more ships in 2015 than any year in its history, but revenues show interesting trends as a new business model emerges The strategy for 2015 was for the ASRY sales team to more aggressively attract ships for repair and increase the total number of vessels repaired, so as to counteract the past year s trend of reduction in average spend per vessel. This target was achieved resoundingly with 243 ships repaired in total in 2015, compared with 176 in With dock occupancy increasing to near-full utilization is a notable improvement from 2014 and in line with the ambitious target set for Surprisingly, upon closer inspection of our statistics, the expected downturn in owners spending did not actually materialise (contradicting popular opinion), as well as the emergence of an interesting new direction in the yards basic business model. The first trend which becomes clear after deeper examination is that the despite common market opinion, shipowners actually spent more per vessel on significant projects (ships either docked or repaired on slipway in ASRY). This figure was actually up on 2014 (see below chart), and it is a welcome break of trend considering popular opinion among commentators that owners are generally spending less. The second trend is a marked increase in the variety of type of projects ASRY now repairs. This becomes most apparent when looking at the alongside statistics. More vessels were repaired alongside than in any other facility in ASRY, yet the total revenues for those projects was, not unexpectedly, the lowest of all the facilities. From this it can be seen that the essence of the paradigm shift is that ASRY s project mix includes a higher proportion than ever before of smallerscope projects, which tend to take place alongside, in ASRY s newly expanded berth capacity. Previously, ASRY s primary revenues stream came from large vessels, with large projects, docking in ASRY s drydocks consecutively. The essence of the paradigm shift is that ASRY s project mix includes a higher proportion than ever before of smaller-scope projects, which tend to take place alongside. The OSV recieved major modifications while in ASRY, including the installation of a 75-tonne Liebherr deck crane, including all engineering calculations, design analysis, inclining experiements, and stability booklet issuing. Today, ASRY is reacting to new market conditions by having a much greater variety in its mix of projects. Instead of large vessels with large jobs, ASRY is taking a wide range of vessels, with a broad range of jobs. A greater project mix, confirms Nils Kristian Berge, is our response to a market that is far more competitive in this region than ever before, and we are competing for vessels that in general have less major maintenance requirements due to being younger. The world fleet s average age is constantly reducing as new regulations and requirements makes it increasingly more difficult to trade older ships. Occupancy is at its highest its ever been, but more importantly diversity of scopes is also at its highest. From quick aongside repair jobs to major drydocking projects, we have become a truly multi-offering marine hub, because that is the most effective response to the market s evolution. Now we have to perfect our operations to that end. A comparison OF THE average revenues PER VESSEL, from DIFFERENT ASRY facilities in 2014 and GAS AL KUWAIT SAFANIYAH 3 KOTC s LPG tanker needed overhauling of the main engine and provision cranes, EGE Class Survey, treatment of the hull and 6 Cargo tanks, as well as painting of the funnel, accomodation block, navigation bridge, and engine room housing. This Saudi Aramco owned Production Testing Vessel required a series of inspections and repairs on the main reduction gears, deck crane, navigation system, as well as renewal of its maintenance air compressors and pipelines. DLB Docks +3.9% Slipways +5.4% 8 The sponsoning of the DLB-1600 was a standout project for the yard, which increased the beam from 31.7m to 40.3m, within only a 45-day timeframe. All engineering was done in advance as well as pre-fabrication of the sponsons. DLB 1000 Another Derrick Laying Barge project, this vessel received overhauling of its valves and motors, ballast tank steel renewals, derrick crane maintenance, treatment of the hull, tanks and superstructure, as well as renewals of pipelines and wooden fenders 9
6 ASRY Guide to Ballast Water Treatment System Installation ASRY Names New Ship Repair General Manager Ballast Water Treatment System (BWTS) Retrofits present serious challenges, including which system to choose, which maker to choose, where to place the system, will it be suitable for where the vessel operates, class approvals and more. ASRY is a BWTS expert in the Middle East, with a turnkey process that will make any vessel compliant, start to finish, at minimum cost and time: Define Framework Engage Shipyard Feasability Engineering Decision & Installation Non-Compliant Vessel Compliant Vessel Shortlist preferred BWTS makers Rule out particular systems (e.g. no active substances) Identify specific approvals required (e.g. US Coastguard) Identify any specific operational requirments (e.g. fresh water operation, etc) Ideal Shipyard partners must have: Geographical presence where vessel operates Impartial in-depth knowledge of all BWTS makers In-house engineering team with 3D scanner Turnkey capabilities to complete compliance in shortest timeframe Compile tech specs for vessel and BWTS systems Techno-commercial evaluation decides which system and maker 3D scanning, leading to engineering plans for each shortlisted BWTS maker Order equipment, finalise installation drawings, & obtain Class Approval Analyse system performance for each maker (e.g. adequacy of ballast pumps, generators, etc) Analyse Bill of Quantities of retrofit for each maker Pre-fabricate required items (pipe spools, steel seats, boards, etc) Pre-plan installation sequence to minimise yard time. Ship in yard - INSTALL! CASE STUDY A major Mideast tanker owner commissioned ASRY to carry out a full spectrum BWTS feasability study on its fleet of tankers, including 3D scanning, modelling and engineering plans for X dirrerent systems on each vessel, with complete comparative analysis. 3D MODEL OVERLAY OF 3D SCAN 3D SCAN OF POTENTIAL SYSTEM SITE 10 New Ship Repair General Manager (GM), Charles Maher, is set to bring 15 years of experience with top firms including Dormac, Grand Bahamas Shipyards, and Southern African Shipyards Maher brings both project management and new business development experience ROADMAP TO COMPLIANCE ENGINEERING FOR NEW PLATFORM BALLAST PUMP ADEQUACY ANALYSIS ASRY has appointed Charles Maher as the new General Manager (GM) of the Ship Repair division. Maher brings more than 15 years worth of corporate and hands-on technical shipyard experience at Dormac Marine & Engineering, Grand Bahamas Shipyard, and Southern African Shipyards. He will lead the newly restructured Ship Repair division of ASRY. Maher s appointment will overlap with the outgoing Ship Repair GM, Magdy Sharkawy, who retires in February, to ensure a comprehensive transition of the role and a seamless client handover. This new addition to the senior management team, commented ASRY Chief Executive, Nils Kristian Berge, will not only carefully pass on ASRY s client portfolio to fresh hands, but will also inject a new energy and vitality into the process of attracting new customers. Maher s previous experience, both corporate as a New Business Development Manager, and technical with years of Project Management experience, will no doubt build on Magdy Sharkawy s hard work and provide a strategic advantage as ASRY continues to navigate the global shipping markets ever-changing conditions. We wish Magdy best of luck in his retirement, and express the firms deep appreciation for his decades of service. Maher, a South African national, was previously General Manager Marketing New Business Development at South African Shipyards. Prior to that Maher was Business Development Manager Offshore at Dormac Marine & Engineering for several years, after over a decade of Project Management experience at Dormac and Grand Bahamas Shipyards. 11
7 Navy work at ASRY sees uptick with new fleets A Bremen-class frigate recently docked at ASRY, the first time the German Navy had used ASRY Navy, Defence & Industrial Projects (NDIP) Department at ASRY adding new Navies to client list, while cementing relationships with long-term defence partners ASRY has seen Navy work gathering momentum as new countries join the US, UK and Bahrain as having ASRY as their Navy repair yard of choice in the region. ASRY Chief Executive, Nils Kristian Berge confirmed, In 2014, ASRY was only working on minor Naval projects, but we identified a gap in the regional market for quality military maritime repair, which perfectly fitted ASRY s core skill set, and formed a dedicated division. 18 months later, our Navy expertise is considered the first choice for most fleets operating in the region, and contributes a much more significant portion of the yards revenues. It s proved to be a profitable move saw entirely new Navies bring vessels to ASRY, including the German Navy, which brought a Bremen-class frigate in to rectify machinery mounting issues. There has also been an approach from the Australian Navy to bring their vessels to ASRY in Commenting on why this uptick in interest has occurred, ASRY NDIP Manager Tony Haile identifies three main reasons. Firstly the region is experiencing a surge in military presence from international Navies for political reasons. Secondly, Bahrain hosts the UK Maritime Component Command (UKMCC) headquarters, which is proving to be the most convenient hub for visiting fleets, and happens to be our neighbour. Thirdly is ASRY s reputation; strong word of mouth 12 from previous completed projects is creating new leads amongst the incoming crews. Word of mouth of past successes are driving the acceleration of interest in the yard s Navy capabilities and 2015 had several major highlights to add more fuel to that fire. The first half of the year saw ASRY complete Power Generator upgrades on two Mine Countermeasure Vessels (MCMV) for the Royal Navy. With the Royal The region is experiencing a surge in military presence from international Navies for political reasons ASRY Navy, Defence & Industrial Projects Manager, Tony Haile Navy deployments in the region being extended to 9-months, mid-deployment maintenance is now required to be carried out by a local yard, and ASRY has already completed two of those, with another two due in The yard s collaboration with the US Navy also remained firm as a 7-month refit of one of their Minesweeper and patrol craft began, with completion due in Maintaining a competitive advantage over other yards has also been a priority, with three new defence contractors signing agreements with ASRY under the Project Jupiter initiative. Babcock International and BAE Systems Maritime Services, two of the UK s market-leading engineering support services company, signed enabling agreements to undertake maintenance work on UK Royal Navy warships in the Gulf, which will cover work from general maintenance to specific projects such as the changing of diesel generators under the Sandown Volvo Generator Programme. ASRY also finalised the details of a specialised service agreement with Lightfoot Defence to a UK-based refrigeration and HVAC contractor, to become one of the yards onsite specialist contractors, and further expanding the yard s Navy-specific technical capabilities. 13
8 CUSTOMER FEEDBACK Impressive dedication, teamwork, and understanding. KOTC Superintendent feeds back to ASRY after the docking of Gas Al Negeh building the arabian gulf s leading cluster of onsite specialist contractors at asry 14 15
9 External Newsletter for Arab Shipbuilding & Repair Yard PO Box 50110, Hidd Kingdom of Bahrain Tel: Web:
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