Keith Burgess, chief executive Dubai Drydocks
OGN: What are the key factors which make Dubai Drydocks competitive in the ULCC/VLCC repair and refurbishment market?
BURGESS: Dubai Drydocks handles a significant percentage of the total ULCCs/VLCCs which are docked each year worldwide. The number of our drydocks and their size gives us an enormous advantage over our competitors in terms of flexibility. We can dock a VLCC in any one of three graving docks. The weather, although known to be hot in the summer, is in fact a major point in favour of the yard. For nine months of the year the weather is very pleasant and, with only a few days of rain, it is an ideal location for carrying out hull treatment work.
The fact that we employ a dedicated workforce is also a strong point in our favour, as many of our competitors have taken the route of relying heavily on subcontractors. This can cause problems with quality and labour controls. Geographically, our position in the Gulf close to so many of the world's oilfields means that ULCCs/VLCCs have no deviation costs when using our facilities.
OGN: Do you have any expansions planned at your facilities? Can you foresee any market circumstances which would require expansion?
BURGESS: It was defined last year that the steel and pipe capacity would need to be increased to be in a position to deal with the additional workload associated with conversions.
The following changes have recently taken place or are nearing completion in the yard as part of the expansion plan
OGN: Is Dubai Drydocks planning to diversify its scope of operation/services offered in the near future?
BURGESS: We have been moderately successful in recent years in branching into the conversions market and the newbuildings front. These are areas where there is still great possibility for expansion. We are now looking at the costeffectiveness of improving our facilities for these activities with a view to improving efficiency and capacity.
OGN: Can you detect any changes in the nature of the shipbuilding and repair business in recent years? What are the driving forces of change in the industry? What are the main factors affecting your business levels in general?
BURGESS: The ageing tanker fleet and the current newbuilding activity have affected our traditional market. Older tankers require more work in a repair yard than new ones. This has meant an overall reduction in demand and a subsequent overcapacity, worldwide, of dock space. It is particularly important, therefore, to maintain the competitive edge in terms of quality, delivery time and value for money.
OGN: Does Dubai Drydocks maintain marketing offices around the world to promote the products and services on offer?
BURGESS: We have sales agents in Brazil, Cyprus, Denmark, France, Germany, Greece, Hong Kong, India, Iran, Italy, Japan, Korea, Norway, Poland, Singapore, Sweden, The Netherlands, UK and US.
OGN: As chief executive of Dubai Drydocks, what are your hopes and expectations for the company over the next 10 years?
BURGESS: Dubai Drydocks is one of the most successful ship repair yards in the world. We aim to continue in that position by offering a thoroughly professional ship repair service to all our customers.
In addition, we expect to take an increasing share of the world's conversion market and grow steadily in the newbuilding activity. I envisage that this will cover the smaller end of the scale, involving vessels for neighbouring Gulf Cooperation Council (GCC) countries where we can offer distinct advantages over yards further afield.
