Replacement of wooden dhows in the region will create an estimated $4.5 billion (Dh16.56 billion) market for small steel hulled cargo vessels, say industry analysts.
Governments in the region are expected to phase out wooden cargo dhows in compliance with the International Maritime Organisation's current regulations, said shipping industry representatives.
"Dhows, though cheap compared to steel vessels, will have to make way for steel vessels in the near future because they neither have navigation equipment nor come under rules and regulations. Iran has already started the move," said P. Chakrabarty, deputy general manager of India's Chowgule and Company Limited.
"In the Middle East, there are plenty of wooden dhows, each with a capacity of between 300 and 2,000 tonnes. The dhows transport about 1.5 million tonnes of cargo," Chakra-barty said.
According to rough estimates the region will need at least 1,500 barges to replace the dhows in the years to come, he said.
These vessels will have to be built according to statutory requirements, including safety and navigation equipment, and each barge will cost anything between $2 million (Dh 7.36 million) and $4 million (Dh14.72 million). This translates into a $4.5 billion (Dh16.56 billion) market, he pointed out.
Chowgule's is highlighting cargo carriers, small tankers, landing craft and flat-top barges at the 'Gulf Maritime 2005' being held at the Sharjah Expo Centre.
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