Bahrain's shipbuilding industry comes of age

Bahrain's Arab Shipbuilding & Repair Yard Company (ASRY), which celebrated the culmination of its $188m expansion programme at its 35th anniversary function, is facing tough market conditions and regional competition.
Established in October 1977 as the Middle East's first shipyard designed specifically for the repair of supertankers, competitor facilities in Oman and Qatar are increasing the pressure on ASRY, combined with a dip in the global maritime industry.
"ASRY has been an important contributor to the economy of Bahrain, and has been a particular Arab achievement," said H.E. Abbas Ali Al Naqi, secretary general of the Organisation of Arab Petroleum Exporting Countries (OAPEC), the owner of ASRY.
"However, the financial crisis has had a particular impact on global shipyards, resulting in increased competition from similar facilities," said H.E. Al Naqi.
He added that ASRY's expansion programme "was the most prominent shipyard project in the area in the first half of 2011." It has given ASRY considerable impetus in moving forward, he said.
Seatrade chairman Chris Hayman concurred: "It is clear that the global maritime industry is facing challenging market conditions."
However, he pointed to potential growth areas such as the expected ratification of the International Maritime Organisation's new ballast water convention, which "will create the need for the retrofitting of 39,000 vessels over a five-year period.
I have no doubt ASRY will be competing effectively for a significant share of this business," said Hayman.