Gulf counties will aim to capitalise on 4.5 per cent forecasted 2014 growth in global trade and the economies of scale presented by bigger ships and alliances, according to maritime experts.

The Middle East is investing heavily in its port infrastructure and shipping as it prepares to meet the dual challenge of changing global trade patterns and the continued increase in the size of cargo ships, according to maritime professionals gathered for the seventh biennial edition of Seatrade Middle East Maritime (SMEM), which opened at the Dubai World Trade Centre in Dubai, UAE, on October 28.

“Global trade this year will more than double the 2.2 per cent recorded in 2013 but higher operating costs, is leading to an increase in the number of larger vessels, putting pressure on port infrastructure and logistics,” said Chris Hayman, chairman of Seatrade, organisers of Seatrade Middle East Maritime 2014.

During his keynote address at the event, Jamal Majid Bin Thaniah, vice chairman, DP World, explained the necessity for investment in port infrastructure to accommodate ever larger vessels, “we have invested a further $850 million to build the new semi-automated Terminal 3 facility at our flagship Jebel Ali.”

“We have built terminal 3 in response to both the increased size of our customers’ vessels and in response to changing trade patterns,” added bin Thaniah, identifying Africa and South America as areas in particular that call for greater infrastructure investment to facilitate their growth.

Speaking about the longevity of these latest global trends, Rashed Al Hebsi, CEO of Emirates Classification Society (Tasneef), said: “I think this is going to be a long term trend, especially with all the infrastructure developments that are happening. Bigger ships and increasing the size of ports, is going to help to reduce costs and will have a positive impact on shipping in general.”

Abdulkareem Al Masabi, vice president, Abu Dhabi Ports Company (ADPC), said: “Ten years ago a 6,000 or 8,000 TEU ship was considered a large ship. Now that is almost like a feeder vessel. The trend of the growing size of vessels to 16, 18, 20, 22,000 TEU, puts a huge strain on ports as well.

“There’s a huge investment that you have to put into ports to stay competitive. It’s not just about the size of cranes or the size of the ports and the quay walls, there’s now the new technology of semi-automation that we have already invested in. Even that is growing on a very fast track.”

“It is good to have a downturn, it is good to stabilise,” said Khamis Buamim, chairman, Drydocks World and Maritime World & Group CEO. “Sometimes it is good to reconfigure your future to how you want it.”

Despite slow growth since the economic downturn in 2008, the Middle East finds itself placed at the centre of the emerging cross formation of North South and East-West trade, a position that offers multiple opportunities, Buamim pointed out.

Jørn Hinge, president and CEO of, United Arab Shipping Company (UASC), said: “Growth in the size of vessels also demands that the shipping lines cooperate. I think this is one of the reasons you see these alliances becoming more and more common, because it allows the shipping lines to share the capacity of these large ships.

“The benefits of alliances is that there are even more lines to fill the ship. You only have the benefit of a big ship if you utilise it fully, if it is half full there is no benefit.”

The three-day exhibition and conference, which concludes today (October 30) is part of Dubai Maritime Week, hosted by Dubai Maritime City Authority (DMCA), and is the largest event in the regional calendar with more than 7,000 participants from 67 countries expected to attend following a record turnout in 2012. – TradeArabia News Service