Mena maritime industry rides out financial storm

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31 Oct 2010

The Middle East and North Africa’s (Mena) maritime business has rode out the global financial storm with operators recording significant rise in cargo operations and $38 billion worth of ports projects currently taking place across the region, a maritime forum was told. “All indicators show that the worst days of economic downturn are behind us, as we have continued to witness heavy demand for cargo operations – both importing and exporting – between the Middle Eastern region and the rest of the world,” said Christopher Hayman, Chairman of Seatrade, the organisers of Seatrade Middle East Maritime 2010, which opened today at Dubai International Convention and Exhibition Centre.
Top international and regional maritime industry experts are meeting in Dubai to discuss the region’s expanding fleet while addressing ways to deal with the challenges and opportunities that shipowners face on the global shipping market.
Other key concerns being addressed include the current outlook for major shipping markets – tanker, dry bulk and container – and in particular, shipping relations between the Middle East and China.
“While it’s true the global downturn dampened the overall activity of all transport businesses, including air, road and rail networks, maritime shipping has proved to be the most resilient, with fundamentals largely managing to remain in place,” Hayman added.
He however called on operators to change strategies as they position their businesses to conform to the new financial era, adding that the maritime industry will continue to be the lifeline of the global and regional business community.
The Arabian Gulf is rated as one of the world’s most active international maritime centres, with the current developments in the region, including construction and energy-related activities, boosting volumes of containers and increasing bulk cargo.
The forum also heard from shipping operators and financiers who gave the assessment of the 2008-2009 impact of the global downturn on the maritime industry and also discussed the technical and operational challenges faced by the Middle East maritime industry.
Piracy a major concern in shipping sector
Top issue on the agenda was piracy. According to latest statistics, Somali pirates hijacked 81 ships in 2009, including four oil tankers and received over $71 million in ransom payments. In 2010, 21 ships have so far been hijacked, five of which have not yet been released, and ransoms paid have not be made known yet.
Speaking during the opening session of the Seatrade event, Mohammad Souri, Chairman and Managing Director of the National Iranian Tanker Company (NITC), revealed the huge losses being incurred through piracy, saying that a number of his company’s ships have been hijacked while others managed to escape after being chased and threatened by the Somali hooligans.
“We have had to restrategise our business planning and in some instances, our vessels have been forced to change routes, which of course is expensive for our operations, and adds risk of injury to our crew,” Souri said. Plans to place armed security guards aboard ships passing through the pirate-infested Gulf of Aden are also being explored, where around 260 vessels pass through every day.
Addressing delegates on the current state of shipping industry in the Middle East, Jamal Majid bin Thaniah, who is also Group Chief Executive Officer, Dubai World and Group CEO, Ports and Free Zone World, said the large number of companies participating in this year’s event shows the importance of the shipping sector in the UAE.
More than 300 companies drawn from about 30 countries are exhibiting at Seatrade, with over 400 delegates attending associated conferences at the event, which include Money and Ships, Bankers Forum and Offshore Marine.
The Dubai event is held every two years and is one of the world’s fastest-growing maritime events, ranked among the industry’s Top 10 largest.

Source: Alrroya.com