The recent Saudi Maritime & Logistics Congress highlighted Saudi Arabia’s growing shipbuilding industry. Panelists emphasized the importance of developing local talent and embracing technology to compete in a market currently dominated by China, Korea, and Japan, reports Seatrade Maritime.
Significant Opportunity
Alastair Bisset, general manager of Zamil Shipyards, identified a significant opportunity for Saudi Arabia in its offshore energy industry. With over 500 offshore support vessels (OSVs) operating near the Kingdom’s coast, there is a high demand for new builds and refits. As many of these vessels approach their 15-year age limit, Saudi Aramco’s preference for newer vessels presents a favorable market for shipbuilding companies.
Bisset noted that the region’s focus on new technology is supported by Saudi Aramco’s programs to incentivize and develop hybrid propulsion and other innovations. While major conversions of OSVs are less common, the 15-year cycle provides an opportunity to adopt new technologies and meet the evolving needs of the industry.
Attracting Talent
“I believe [Aramco] should do more. They should give carbon credits, or an equivalent for the local industry, to ensure that operators invest in and explore new technology. Of course, we don’t like to have additional risk in shipbuilding that can delay programs and cost money, but we have to take that bold step forward and start investing in new technologies,” said Bisset.
Answering a question from the audience, Bisset said the 15-year age limit could be seen as arbitrary, especially when comparing a new, poorly maintained vessel to an older well-built ship with high maintenance standards. Overall, Zamil Shipyards’ preference is for consistent enforcement of the rules. “We’d like to see owners also taking a responsible view towards replacement and in particular, looking to build here in the Kingdom,” he added.
Facing the challenge of developing an efficient offering and attracting talent to the shipbuilding sector, Terje Neraas, vice president – of business development at IMI said automation and robotics are changing shipyards themselves.
“Our aim is to make sure that we bring top class training and education to the kingdom. I know that top class means high cost, but you can’t do without it. We are working over the long term to innovate and reduce the cost of training. We will be competitive because we are nonprofit and self-sustainable. We need to exist, and we need to be aligned with the market and the industry, and that’s our goal,” said Al Shehri.
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Source: Seatrade Maritime
