Thursday, March 27, 2008

Gulf region turning in to a major hub for ship repair services

The Gulf region is fast turning into a major hub for ship repair services and conversion projects, with Dubai Drydocks in the UAE and the Arab Ship Repair Yard in Bahrain have been experiencing a significant increase in business volumes.

There are several reasons for the growing interest of ship owners and management companies in GCC-based ship repair yards, the most important being the cost factor. It is but obvious that ship owners will always seek the best deal possible when negotiating repair operations. As is well known, labour and steel parts are the most important components of any basic repair operation, and therefore hold the key to competitive pricing. The GCC region enjoys a significant advantage in this regard largely due to easy availability of affordable & experienced labour from close traditional maritime markets of India, Bangladesh, Sri Lanka and the Phillipines. The cost of repair in the Middle East is estimated at 100 to 105 compared to 250 in Japan, 140/150 in Europe, 110/115 in Turkey and Balkans. China and Indonesia though offers repairs on a scale of 50/65 and about 60/75 respectively in comparison. Despite the low repair costs in Far-East based ship repair yards, what works towards the advantage of UAE and Bahrain is the large number of 'westbound traffic' out of the Gulf region. The sixth edition of the Gulf Maritime exhibition, which will be held at Expo Centre Sharjah from April 21-23, 2008, will feature the latest and the most advanced range of ship repair machinery, equipment, products and technologies.

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