It was a challenging year for ship repair globally, and the Middle East was no different. However, Asry (Arab Shipbuilding & Repair Yard) managed to manoeuvre those challenges to win the Shipyard of the Year Award at the recent Lloyds List Middle East and Indian Subcontinent (MEIS) Awards 2016, one of the region’s leading honours in the shipping industry.

It was the second year in a row the yard has taken home the award, which recognises a shipyard in the Middle East or Indian subcontinent region that has consistently met the needs of its customers in these times of tight capacity.

Asry chairman, Shaikh Daij Bin Salman Al Khalifa, who received the award on behalf of Asry, commented: “It is very gratifying to see the judging committee recognise Asry’s proactive approach to the challenges of a low maritime repair market to maintain its position as the region’s leading shipyard. Despite harsh conditions in 2016, Asry posted several new records, including the highest number of rigs repaired in a single year. We are committed to constant evolution to maintain our leading position, putting customer satisfaction and safety above all else.”

This recent accolade is Asry’s fourth victory in the Shipyard of the Year award category, which it also won in 2015, 2013 and 2011.

Shaikh Daij receiving the Shipyard of the Year Award at the Lloyds List Middle East and Indian Sub-Continent Awards

Earlier in the year, Shaikh Daij delivered a keynote address at The Maritime Standard Tanker Conference in the UAE, emphasising the significant challenges facing the ship repair market in the Arabian Gulf, and Asry’s response to them.

The speech outlined key factors in the current ship repair market slowdown, citing de-globalisation in major economies, and the recent oil price decline. The Asry chairman went on to describe the effect of this slowdown on the Arabian Gulf: “Every repair job is now aggressively targeted by yards which give higher discount and take lower margins just to secure business. This is the new normal. We do not anticipate any significant recovery in the general repair market in the near-term.”

Following which, the address summarised Asry’s response: “Today, Asry is a much more diversified hub with a variety of facilities providing flexible options for customers.  We now take an increasing number of simultaneous smaller jobs alongside, and more varied jobs on the slipways, which is a faster and more segmented way of doing business.”

Reviewing Asry’s results from January to August 2016, the extent of the regional ship repair markets decline becomes apparent. Revenues from ship repair activities are down 22 per cent year-on-year for the period, and the average repair spend per vessel has dropped 9 per cent.

“Major changes have already started taking place at the shipyard,” revealed Magdy Mustafa, acting chief executive, “with more to come over the coming months. We must stay proactive in preparing for the upcoming challenges if we are to remain competitive and viable.” He warned.

Founded in 1977 in Bahrain, Asry has over 35 years of experience in marine asset optimisation. Its leading range of facilities includes a 500,000dwt drydock, two floating docks of 252m and 227m in length, 15 repair berths with a total length of approximately 4,000m, twin 255m slipways, as well as a full range of workshops and service centres.