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18Maritime Reporter & Engineering News FEATURE SHIP REPAIR While small in stature at just 760sq. km. with a population of1.2 million, the Kingdom ofBahrain, an archipelago in the PersianGulf just east of and connected by cause-way to Saudi Arabia, seeks to grow its stature in the world marine market to be- come a global maritime and logistics cen-ter by 2030. The Arab Shipbuilding & Repair Yard Co. (ASRY), which is cen- tral to this success, last month celebratedseveral key milestones, including the an- niversary of its 35th year in business and the opening of its new 1.38km Repair Quay Wall, the cornerstone of the ship- yard?s $188 million facilities expansion investment program and a signal of the yard?s intent to diversify its operations. While the ASRY event was high-profile, including the official inauguration of the new Repair Quay Wall by Bahrain?s Deputy King HRH Prince Salman binHamad Al Khalifa, the investment in ASRY is just one plank in Bahrain?s 2030 strategy which is intent on creating in the Kingdom a Global Maritime and Logis-tics Center. ?Our major objective is to make Bahrain a strategic gateway and shipping hub to the northern gulf, whilefurther strengthening ASRY?s role as a major global player in the offshore, off- shore repair and other related services tothe shipping industry,? said ASRY?s Chairman, Shaikh Daij bin Salman binDaij Al Khalifa. ASRY?S LONG HISTORY ASRY was created as the first ship re- pair yard in the Arabian Gulf designedspecifically for the dry docking and re- pair of super tankers, and with a single 500,000 dwt graving dock, ASRY opened for business in 1977. ASRY was origi- nally conceived, and to this day is still owned, by the countries that make up OAPEC (Organization of Arab Petroleum Producing Countries), including Bahrain,Kingdom of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Iraq and Libya. ASRY has steadily built its business in the Gulf and its global reputation, but it has not been immune from the cyclical nature of the ship repair business, and has watched ship repair sales suffer in recent years in parallel with the ailing globaleconomy and ship owner?s penchant for spending fewer dollars on the upkeep of ships. ?I think we have to be optimistic but we have to be realistic,? said Shaikh Daij. ?The market has not rebounded yet, but it will rebound. Ships must be re- paired and maintained.? Despite the recent and prolonged globaleconomic downturn, though, ASRY fared relatively well in 2010, repairing 210 ships and rigs ? a record number ? com-pared to 168 the previous year. According to Chris Potter, ASRY?s CEO for nearly two decades, traditionally the shipyard maintains an even keel in its business source, with 50 percent coming from the seven Arab owners of the ship- yard; and 50 percent from the interna- tional market. In 2010 that ratio was skewed more heavily (65%) to the inter- national business; while this year it has taken a turn (65%) toward Arab owners. ?ASRY was the first ship repair yard in the Middle East and since its inceptionhas established itself as a leader both inthe region and internationally,? said ASRY?s Chairman, Shaikh Daij bin Salman bin Daij Al Khalifa. ?I?m de- lighted to say that the baby of the ship re-pair industry in 1977 has matured intotruly a world leader.? ASRY?s original 500,000dwt capacity graving dock today is complemented by two floating docks capable of accommo- dating vessels up to 80,000dwt and 120,000dwt respectively, two of the largest slipways in the region and 15 re- pair berths. ?ASRY has also moved on from being just a Super Tanker repairer, although VLCC and ULCCs still provide a large slice of the yard?s annual work- load, and today you will see every con- ceivable type of commercial vessel undergoing repair, from tugs and offshore support vessels, through dredgers, gen- eral cargoships, bulk carriers, and con- tainerships to gas tankers. In recent years ASRY has diversified even further, espe- cially into the offshore oil and gas mar- kets, especially for the repair of jack-up rigs, and into the technically demandingnaval repair sector,? said Shaikh Daij. ?ASRY is truly a world-class ?one-stop- shop? for owners? repair and maintenance requirements.? In addition to routine repair, ASRY looks to the refit business coming with the adoption of Ballast Water Treat- ment (BWT) systems, a market de- mand that is estimated at 39,000 shipsin the next five years, to help smooth thetraditional troughs inherent to the ship re-pair industry.Today ASRY is much more diversified then when it opened shop in 1977. While ship repair remains its staple, it today hasbuilt strong additional business lines in- cluding: the repair of military ships, no-tably garnering a significant share of U.S. ASRY 35 Years Strong & the Cornerstone in Bahrain?s Push to become a Global Maritime Power by Greg Trauthwein, editor (Photo: ASRY) MR Jan.12 # 3 (18-25):MR Template 1/9/2012 11:55 AM Page 18