ASRY NEWS LEADING SHIP AND RIG REPAIR IN THE ARABIAN GULF SINCE 1977
Q1 2014
4,000 Ships and Counting New milestone highlights ASRY’s market dominance
ASRY wins Shipyard Of The Year 2013
50th rig repair proves Offshore success
Saudi Office now open for business
ASRY NEWS
Q1 2014
Chief Executive Message 2014 has strong foundations on which to build a unified future full of growth
The next step in ASRY’s journey is one of unification. Having completed an exciting period of expansion and growth, we have built all the various components required for greater success, but now we need to fit these components together for a unified whole to capitalize on our new potential, continue to focus on safety, and dedicate ourselves to operational excellence. 2014 will see the introduction two new developments. Firstly, the company is going to undergo a corporate re-structuring that will re-organise divisions, departments and responsibilities so as to streamline efficiency and improve cost-effectiveness. This re-structuring will be rolled out in Q1 of 2014. Secondly is the installation of a new cycle
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of continuous improvement. By introducing new corporate performance measuring systems linked to Key Performance Indicators, we can set realistic targets, which will then be measured and adjusted for the process to start again. This will enable us to maintain and improve our focus on safety and operational excellence. We’ve ended 2013 with some very encouraging developments: the Shipyard of the Year award from Lloyds List, our 4000th ship repair, the 50th rig repair, our third straight year of revenue growth, and more. These are exciting endorsements that we are on the right track, and evidence that the recent facilities expansion project is bearing fruit. Moving forward, however, we need to unify these new facilities
and capabilities to optimize the yard’s success even further. By stressing the importance of operational excellence in safety, quality and efficiency, bringing employees closer together, and re-organising the corporate structure of the yard we can align all of the yard’s impressive expertise and work together in unison to drive forward with greater force. Once we achieve unity, the whole will be more than the sum of its parts, leading to consistent improvement and growth. We have already achieved much, but the future is full of new potential. Together we can achieve it.
Nils Kristian Berge
CHIEF EXECUTIVE ASRY
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ASRY NEWS
ASRY repairs its 4,000th ship
Milestone at leading yard makes it one of the most experienced repair facilities in the Middle East
ASRY, has achieved a groundbreaking milestone with the recently repair of its 4,000th ship. The tally of repairs now ranks it as one of the most experienced shipyards in the Middle East, having been in operation since 1977, longer than any yard in the Arabian Gulf. The 4,000th Vessel, the Gas Al Gurain, is an LPG Tanker owned by Kuwait Oil Tanker Company (KOTC) one of ASRY’s best and longest
standing customers. Fittingly, KOTC is good example of the long-standing relationships that are the hallmark of ASRY’s success. One of the primary reasons ASRY has managed to reach the 4,000-ship mark is due to some of the world most prestigious fleets, including KOTC, Mearsk, UASC, Odfjell and more, choosing the yard as their repair partner of choice in the region. Showing no sign of slowing
down, ASRY is posting continued revenue growth in ship repair year-on-year despite regional competitors seeing falls, which will enable it to continue to offer the same operational and safety excellence that has contributed to its current position. In the preceding 36 years of operation ASRY has managed to earn one of the most robust portfolios of global quality and standards certifications, with
Q1 2014
more continually in the pipeline. ASRY’s ascendency runs parallel to the Kingdom of Bahrain’s own rise, as it continues to modernise and climb further into regional and international significance. With diversified revenue streams already in place and gaining momentum, and more expansions planned in the fiveyear strategy, another 4,000 ship repairs at ASRY seems more than likely.
Gas Al Gurain, ASRY 4,000th ship repair, was a KOTC vessel, unsurprisingly as they have been long-standing partners for many years
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ASRY NEWS
Q1 2014
ASRY Chairman Shaikh Daij Bin Salman Al Khalifa (centre) collecting the award from Lloyds List officials at the winners ceremony
ASRY is Shipyard of the Year 2013 Lloyds List names ASRY the Shipyard of the year at the Middle East and Indian Sub-Continent Awards ASRY has won the Shipyard Of the Year Award at the recent Lloyds List Middle East and Indian Subcontinent (MEIS) Awards, one of the region’s leading honours in the shipping industry. Judges recognised the yard’s resilience throughout challenging market conditions and ability to grow, improve and expand when competitors could not. ASRY Chairman, Shaikh Daij bin Salman Al Khalifa, received the Award at a gala dinner in the UAE. The Lloyds List MEIS Awards are awarded to the best performers from the region in the key areas of shipping, port operations, as well as shipping services. As Lloyds List stated, “the Shipyard of the Year Award recognises a ship yard and/or
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shipbuilder in Middle East and Indian Subcontinent that has consistently met the needs of its customers in recent times of tight capacity. Entries are judged based on the ability of the yard to offer cost effective and quality services while keeping a keen eye on safety.” This recent accolade is ASRY’s second victory in the Shipyard of the Year award category, which it also won the award in 2011. ASRY’s growing portfolio of awards success now includes the Safety Award at last year’s Lloyds List MEIS Awards, Corporate Social Responsibility Award in the Seatrade MEIS Awards 2012, and similar awards from both the Seatrade MEIS Awards 2010 and Lloyds List Global Awards 2010.
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ASRY NEWS
Q1 2014
Global Shipping Leaders Awarded by ASRY
Annual ASRY Awards Ceremony rewards the best performers of 2012 at glittering Venice event
ASRY’s annual celebration of its best clients and agents – the ASRY Awards for Best Customers and Agents – took place recently at the stunning Hotel Cipriani in Venice, where the leading performers from a variety of categories were hosted and given bespoke awards by ASRY’s senior management. The ASRY Awards for the Best Customers and Agents of 2012 was the fifth version of the annual ceremony that is designed to encourage long-term relationships with ASRY and reward the loyalty of returning customers. As such, the venues for each award ceremony are in some of the most prestigious locations in the globe. This year the historic Hotel Cipriani in Venice provided an elaborate and opulent scene for the formal dinner and ceremony. Speeches by ASRY’s
WINNERS ASRY Award for Best International Customer of 2012 3rd Place: Perseveranza SpA di Navigazione, Italy 2nd Place: Odfjell Management, Norway Winner: Maersk Line Ltd, USA ASRY Award for Best Arab Customer of 2012 3rd Place: Red Sea Marine Services, Saudi Arabia 2nd Place: Mideast Ship Management, UAE Winner: Kuwait Oil Tanker Company, Kuwait
Chairman and Chief Executive, revealed the motivations and importance of the awards. “The primary reason for this annual event,” said Shaikh Daij Bin Salman Al Khalifa, ASRY Chairman, in his speech, “is to show our gratitude to all our stakeholders for the commitment and dedication you have shown ASRY over the previous year that has allowed us to go from strength to strength.”
All the ASRY Award winners line-up after the ceremony
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ASRY Award for Best Slipway Customer of 2012 3rd Place: Great Lakes Dredging and Docking Co, Bahrain 2nd Place: Bourbon Offshore, UAE Winner: Zamil Offshore Services Co, Saudi Arabia ASRY Award for Best Agent of 2012 3rd Place: Coway Marine Services, Singapore 2nd Place: ECA Shiprepair, Norway Winner: Vogler Marine Agencies, USA ASRY Award for Special Appreciation 2012: Victoria Maritime Services ASRY Award for Outstanding Project in 2012: Stolt Valor
Meanwhile, Nils Kristian Berge, ASRY Chief Executive, underlined the important values of the way ASRY does business. “As we drive forwards,” Berge said, “I’m convinced that we maintain the fundamentals that have become synonymous with the ASRY name – trust, fairness, and above all, customer dedication. These values must underpin and inform all of our future success, because they are the
foundations on which all our success is built. We are very fortunate that all our supporters have adopted these values and become ambassadors of the ASRY way of doing business.” The guests included the senior management of some of the global and regional shipping industries leading corporate names, such as Maersk Line, Kuwait Oil Tanker Company, UASC, Zamil Group, and more.
The impressive Venice venue served a fitting backdrop for the event. Shaikh Daij Bin Salman Al Khalifa, ASRY Chairman, giving his welcome speech (top left), and Don Vogler with his Best Agent award after the ceremony (top right).
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ASRY NEWS
50th rig docks at ASRY
Q1 2014
The new Quay wall berths full of rigs as ASRY’s 50th rig, Perro Negro 5, undergoes repairs.
Diversification into Offshore repairs continues to prove successful as Offshore division reaches milestone
ASRY has recently repaired it’s 50th rig, cementing the place of the ASRY Offshore Services division as one of the primary revenue streams of the yard, and proving the wisdom of diversifying into offshore repairs five years ago. ASRY’s 50th rig was the Perro Negro 5, an independent leg cantilever jackup rig, operated by Saudi Aramco, one of ASRY’s long-standing customers. The size and scale of the rig is indicative of the evolution of ASRY’s rig capabilities and expertise over the five years since the division was launched. In that time the yard has repaired one of the largest rigs in the world and in 2013 posted offshore repair work revenues that were approximately 40% of total revenues, making it now an essential part of the ASRY business.
The move into Offshore repairs has been a smooth synergy with the ship repair business stream, with both revenue streams complementing each other to see strong gains with negligible friction. The increased workload is also a good utilisation of the extended wet berth facilities the yard now boasts (new quay wall pictured here). Offshore Services was the first in a series of diversifications that have moved ASRY from being a shipcentric repair yard, to being a multiservice marine facility. The yard not only repairs every kind of ship, but repairs rigs, builds barges for floating power plants, markets its engineering expertise through a Consultancy division, constructs small workboats, and is looking to expand in the near future into land rig work.
The move into Offshore repairs was the first in a series of diversifications that have moved ASRY from being a ship-centric repair yard, to being a multi-service marine facility
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ASRY NEWS
What’s the most interesting part of your job? Having served in range of areas in ASRY over the past 35 years, including Commercial, Ship Repair Management, Mechanical, Electrical & Piping Department, Yard Operations Department, Main Planning, Production Management, I’ve had the opportunity to have a good relationship with many companies in our business, which has helped in concluding important agreements with well known companies in the ship repair industry who have agreed to invest in constructing their own Specialized Services Workshops in ASRY. Those companies will introduce new activities that will add value to the yard, provide additional income to ASRY, enhance the yard’s image in the ship repair market and satisfy the Client needs. Also they will be able to serve the local market which will contribute to the national income of the Kingdom of Bahrain and provide job opportunities to Bahrainis who will be trained on new types of specialized activities and skills. What do you think is the most interesting thing about ASRY? The most interesting thing about ASRY is the continual development policy that ASRY’s top management has adopted and continues to follow under the guidance and leadership our Chairman, H.E. Sh. Daij Bin Salman Bin Daij Al Khalifa. In your opinion, what will be the most important feature of the industry in the near future, and why? The most important feature that the industry will face in future will be the shortage of skilled labour resources at competitive rates, which perhaps will be the major threat the industry will face in the near future. Other important issue will be
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Q1 2014
ASRY Saudi office begins operations
Magdy Mustafa, ASRY’s Technical Resources and Business Development General Manager
New representatvie office in Saudi Arabia set to target quick response jobs and focus on rig market ASRY has begun operations of a representative office in Saudi Arabia in order to target growing opportunity in the Kingdom, particularly in the rig market. “Saudi Arabia is a fundamental part of ASRY business, “ explains Nils Kristian Berge, ASRY Chief Executive, “as not only is there direct business from the Kingdom, but there is also a large proportion of regional fleets that are guided by and must adhere to Saudi
standards. For example, Saudi Aramco specifications are constantly updated, which means that jack-up rigs must also be constantly updated, resulting in more business for ASRY,” The number of rigs in Saudi is increasing and ASRY has built a strong reputation amongst the major rig owners and operators. By creating a local presence in the Kingdom in Al Khobar there will be a greater opportunity to capitalise on the growing market potential.
“Up until now our Saudibased rig work has mostly been modest repairs, for example steelwork, leg repairs, pipework repairs, sandblasting and painting. With the creation of this local presence we can quickly and efficiently respond to immediate repair requirements with major rig repairs still being carried out in our Bahrain facility,” said Berge. Companies in Saudi Arabia that ASRY has been contracted to work for are leaders such
as Saudi Aramco, Ensco, Hercules, Rowan, and Shelf Drilling. The ability to respond with more efficiency is just one of the advantages of having a branch in Saudi Arabia, another advantage being the greater variety of jobs the yard will be exposed to. For example, ASRY has been contracted to install fibre optic cables for a client in Saudi on their offshore rigs, which Berge said was an interesting departure from regular repair jobs.
Onshore rigs in Saudi Arabia are a potential target market for ASRY’s new representative office open in the Kingdom
MEET THE TEAM
Magdy Mustafa ASRY Technical Resources and Business Development General Manager talks about his 35 years at ASRY, clean energy, and the pride of Bahrain the implementation of new legislations on national and international scale for protection of the environment which will have a big impact on the industry in the near future. Where do you think ASRY’s future lies? ASRY should prepare itself for the new technology that will be adopted on future
ships. The world is moving towards the clean energy concept and the use of LNG Bunkers on ships and adopting strict legislations on exhaust gas emissions as well as the ballast water discharged from ships. This will lead the use of new technologies on engines and the installation of new equipment. ASRY should enter into agreements with the
makers of such equipment to provide its engineers with the know-how of such new technology so that it can offer competitive services to its clients in price and quality. Also, there are huge investments in the energy sector in the region where ASRY should be able to participate effectively in this market.
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ASRY NEWS
Q1 2014
ASRY Participates in Invest In Bahrain Exhibition
Corporate Social Responsibility of leading shipyard grows to include national platform for investment ASRY participated in the 2013 Invest in Bahrain Forum and Exhibition, which was organized by the Ministry of Industry and Commerce at Bahrain International Exhibition and Convention Centre, in collaboration with the Economic Development Board, Central Bank of Bahrain, Bahrain Chamber of Commerce and Industry, Bahrain MUMTALAKAT Holding Company, the United Nations Industrial Development Organization (UNIDO) and the Labour Fund (TAMKEEN), under the patronage of His Royal Highness Prince Khalifa bin Salman Al-Khalifa, the Prime Minister. ASRY’s Chief Executive Officer, Nils Kristian Berge, said that the company, in its capacity as one of the pioneering firms in the Kingdom of Bahrain, wished to underscore the importance of its participation in the seventh cycle of this forum which is organized by the Ministry of Industry and Commerce as a key promotional mechanism that targets attraction of investments to the Kingdom of Bahrain and a confirmation of its competitive edge and productive prowess. ASRY’s Chief Executive reasserted the company’s support for the various promotional gatherings which are meant to demonstrate the Kingdom’s capacity to embrace and host projects thanks to its attractive infrastructure and investment environment, as evidenced by the total economic and developmental growth that the Kingdom of Bahrain is passing through now under its wise political leadership and government.
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ASRY staff educates visitors about ASRY’s strategic importance to Bahrain
Japanese Return
ASRY reinforces India ties at Exhibition
ASRY welcomed its first ship from the Japanese market in 6 years recently when the Bow Hector, an oil/chemical tanker managed by Nisshin Shipping docked at ASRY. The docking was a positive indication of more business to come from the Japanese market and an optimistic move forward for ASRY’s agent in Japan.
Over 70 companies join region’s leading marine complex at IndiaBahrain exhibition to boost bilateral trade and industry.
ASRY, reinforced its business ties with the Indian Business community in Bahrain as it recently participated in the premier BahrainIndia Exhibition and Conference which was organized under the sponsorship of Dr. Hassan Abdulla Fakhro, Minister of Industry and Commerce and Chairman of the Board of Bahrain Exhibition and Convention Authority, in the presence of Her Highness Shaikha Hessa bint Khalifa Al-Khalifa, the Executive Director of “INJAZ Bahrain”, at the Bahrain International Exhibition and Convention Centre, during the period 22 to 24 October 2013. Nils Kristian Berge, Chief Executive, said
that ASRY’s participation in this exhibition came as a demonstration of its faith in the importance of supporting the exhibition industry in the Kingdom. He also expressed his thanks and appreciation to the organizers who accorded ASRY the opportunity to offer its products and services to the Indian companies participating in the exhibition in order to amplify the scope of cooperation in the field of ship building and repairs. In addition it provided the platform to acquaint ASRY with the visiting investors and ship owners with the quality and standards of the services on offer by the company as part of its efforts to secure new customers and clients.
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ASRY NEWS
External Newsletter for Arab Shipbuilding & Repair Yard PO Box 50110, Hidd Kingdom of Bahrain Tel: +973 1767 1111 Web: www.asry.net
