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Middle East Report ASRY Turns a Profitable Q1 Bahrain shipyard bustling with business from U.S.-based shipowners The Kingdom of Bahrain?s Arab Ship- building & Repair Yard Co. (ASRY) has turned in a profitable first quarter of 2012 despite the continued shipping recessionand increased competition in the region. As of the beginning of May ASRY was running at close to capacity and had work in hand for the next 12 weeks. This, says CEO Chris Potter, is quite some achieve- ment in a region which already has plenty of repair capacity, even before two major new repair facilities opened for business recently in Qatar and Oman.As a result of increased competition inthe region, sizeable discounts are par for the course and a necessary part ofshiprepair life for the moment, said Pot-ter. Most owners, he says, are opting only for repairs essential for minimum classcompliance. There may be some im- provement over the balance of the year, but Potter and his colleagues are under no illusions and are bracing themselves for another tough year in 2012. The fact that owners are putting off non-essential repairs is a concern becauseit is delaying the massive task of prepar- ing for new water ballast and emissions regulations. Potter believes that the im- plications of the increasingly tough regu- latory environment in ship operations will generate large volumes of work for yards with the necessary preparations inhand. ASRY is already looking at devel- oping strategic alliances with several bal- last water treatment manufacturers. Both sets of new IMO regulations (water ballast treatment and emissions) will require hefty expenditure from shipowners who are already under seri- ous pressure and who will enjoy no direct benefit as a result of their capital invest- ment. Laboring in fiercely tough markets, they are facing over-tonnaged markets awash with tonnage, poor rates, very low enquiry levels and ever increasing bunker prices. One saving grace for ASRY of late has been its decision to establish a dedicatedoffshore division ? ASRY Offshore Serv- ices (AOS). Today, rig servicing, repair, stacking and other offshore-related work are making an increasingly importantcontribution to ASRY?s bottom line. Rep- resenting around 40% of the company?s turnover in 2011, offshore activity could soon outstrip ASRY?s core business, commercial shiprepair, as a revenue stream.Another potentially exciting new in- come stream may also bear fruit some-time soon. Last year saw ASRY move into the Power Barge market, with a joint venture company with UK-based power generation specialist Centrax. The new company, ASRY-Centrax Ltd is in de- tailed negotiations with a number of par- ties for the construction andcommissioning of power barges in Nige- ria and the Philippines.U.S. owners, operators and managers continue to support ASRY in a big way. In 2011 21 vessels from the US market repaired at ASRY, vessels such as con- tainerships, PCTCs, and jack-up rigs.This business came from the fleets of Crowley Technical Management Inc, Great Lakes Dredge & Dock, Ensco In- ternational, Maersk Line Ltd, Pride In-ternational and Rowan Companies Ltd. U.S. owners have also been highly vis- ible at the Bahrain yard during the first quarter of 2012. After drydocking nine vessels in 2011; Maersk Line Ltd. has al- ready confirmed the further drydocking of four more 60,000dwt containerships inthe first half of 2012 ? Maersk Carolina, Maersk Missouri, Maersk Wyoming and Maersk Georgia as well as repairing PCTC Alliance Norfolk in April. The lat- ter is managed by Maersk Line Ltd. andoperated by Farrell Lines. Crowley Tech- nical Management has already repaired afurther PCTC this year, Patriot, while the US Navy?s Cyclone-class patrol boat USS Whirlwind has just completed major repairs on ASRY?s large slipways. One interesting repair job undertaken by ASRY this year on a U.S.-owned ves- sels involved the 8,034dwt heavy lift ves- sel Ocean Charger, owned by New Orleans-based Pacific Gulf Marine, which drydocked at ASRY in mid-Janu- ary 2012 for emergency stern seal repairs. The interesting fact about this vessel was that she was carrying a deck cargo of two 35m patrol vessels built by US yard Swiftships for the new Iraqi Navy. Due to high winds at the time of drydocking,Ocean Charger had to enter one of ASRY?s two large floating docks with her deck cargo still aboard! 2012 so far has also seen the return of the large tankers to ASRY, especially those vessels from the fleet of the Na- tional Shipping Co of Saudi Arabia (NSCSA), which are managed byDubai?s Mid-East Shipmanagement. NSCSA has now been re-branded and now trades as Bahri. This means that all of the company?s large tankers have to be re-painted in Bahri?s new color scheme, using the latest foul-release coating fromHempels. So far this year three vessels have drydocked at ASRY: the 317,788 dwt Wafrah, the 302,977 dwt Marjan and the 303,138 dwt Safwah. Ocean Charger, owned by New Orleans based Pacific Gulf Ma-rine, in dock at ASRY this Janu- ary for emergency stern seal repairs. The interesting fact about this job: she was carryinga deck cargo of two 35m patrol vessels built by Swiftships forthe new Iraqi Navy. Due to highwinds at the time of drydocking,Ocean Charger had to enter oneof ASRY?s two large floating docks with her deck cargo still aboard! 44Maritime Reporter & Engineering News MR May 12 # 6 (42-49):MR Template 5/7/2012 2:51 PM Page 44
