Gulf Countries Investing Heavily in Ports

The Middle East is investing heavily in its port infrastructure and shipping as it prepares to meet the dual challenge of changing global trade patterns and the continued increase in the size of cargo ships, according to international and regional maritime professionals gathered for the seventh biennial edition of Seatrade Middle East Maritime (SMEM), which opened at the Dubai World Trade Centre yesterday (Tuesday 28 October).

“Global trade this year will more than double the 2.2% recorded in 2013 but higher operating costs, is leading to an increase in the number of larger vessels, putting pressure on port infrastructure and logistics,” said Chris Hayman, Chairman of Seatrade, organizers of Seatrade Middle East Maritime 2014.

During his keynote address at the event, H.E. Jamal Majid Bin Thaniah, vice chairman, DP World, explained the necessity for investment in port infrastructure to accommodate ever larger vessels, “we have invested a further $850m to build the new semi-automated terminal 3 facility at our flagship Jebel Ali.”

“We have built terminal 3 in response to both the increased size of our customers’ vessels and in response to changing trade patterns,” added bin Thaniah, identifying Africa and South America as areas in particular that call for greater infrastructure investment to facilitate their growth.

Speaking about the longevity of these latest global trends, Rashed Al Hebsi, ceo, Emirates Classification Society (TASNEEF), commented; “I think this is going to be a long term trend, especially with all the infrastructure developments that are happening. Bigger ships and increasing the size of ports, is going to help to reduce costs and will have a positive impact on shipping in general.”

Abdulkareem Al Masabi, vice president, Abu Dhabi Ports Company (ADPC), commented: “Ten years ago a 6,000 or 8,000 TEU ship was considered a large ship. Now that is almost like a feeder vessel. The trend of the growing size of vessels to 16, 18, 20, 22,000 TEU, puts a huge strain on ports as well. There’s a huge investment that you have to put into ports to stay competitive. It’s not just about the size of cranes or the size of the ports and the quay walls, there’s now the new technology of semi-automation that we have already invested in. Even that is growing on a very fast track.”

“It is good to have a downturn, it is good to stabilize,” said Khamis Buamim, Chairman, Drydocks World and Maritime World & Group CEO. “Sometimes it is good to reconfigure your future to how you want it.” 

The Drydocks World ceo added that despite slow growth since the economic downturn in 2008, the Middle East finds itself placed at the center of the emerging cross formation of North South and East-West trade, a position that offers multiple opportunities.

Drydocks world, which delivered the largest capacity wind power high-voltage direct-current (HVDC) off-shore platform ever built earlier this year, the Dolwin Beta, now faces a capacity problem. Thanks to the group’s successful diversification into the offshore market, it now finds its services in high demand from the shipbuilding and offshore sectors.

Jørn Hinge, president and ceo of, United Arab Shipping Company (UASC), which is at the forefront of two key trends in the container trade, economies of scale through larger ships and strategic alliances between lines, added a shipowner’s view to the debate. “Growth in the size of vessels also demands that the shipping lines cooperate. I think this is one of the reasons you see these alliances becoming more and more common, because it allows the shipping lines to share the capacity of these large ships.The benefits of alliances is that there are even more lines to fill the ship. You only have the benefit of a big ship if you utilize it fully, if it is half full there is no benefit.” 

Held under the patronage of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, UAE, the three-day exhibition and conference will run from 28-30 October 2014 as part of Dubai Maritime Week, hosted by Dubai Maritime City Authority (DMCA), and is the largest event in the regional calendar with more than 7,000 participants from 67 countries expected to attend following a record turnout in 2012. 

SMEM 2014 wraps-up tomorrow (Thursday 30 October) with a dedicated session on offshore oil and gas logistics, followed by ship recycling and concludes with a forum on bunkering.